ZeusHash Faces Cloud Service Shutdown


#1

ZeusHash, the cloud mining service operated by mining hardware company ZeusMiner, has announced that it may be forced to shut down its bitcoin cloud mining operations.

The news comes weeks after ZeusHash announced that it would suspend its scrypt cloud mining offering due to unprofitability. In a message dated 15th January, the service said that bitcoin cloud mining contracts would be frozen after 10 days of unprofitability, in accordance with its terms of service.

The company also advised customers against purchasing additional mining contracts, stating that “it’s not the best time for investment”. CEO Terry Li told CoinDesk that the risk of unprofitability means that the company may have no alternative but to power down their mining operations, noting:

“I don’t know if there are many platforms [that are going to] be left on the play field. I’m sure that suppliers like us backed up by real hashing power would be running out of juice pretty soon. All contracts will be frozen within [a] short time if price keeps dropping.”

Source: CoindDesk


List of sites no longer paying and the ones that are
#2

Terry and Co have been screwing their customers since they opened.


#3

Exactly! Their payout to maintenance fee ratio and price per MH or GH seemed unprofitable from the start.


#4

I was a Batch 1 hardware order that never got my device. It sat in Customs for 2 weeks before it was finally shipped back to Terry. I then spent a MONTH dealing with their “CS” and eventually got my money back minus 10% “restocking fee”. It was garbage, the product was garbage, the company was garbage. Terry was mining with hardware while selling it used.


#5

At this rate there will only be a couple of sites left, I still think that a big part of the dump was the cloud services a lot of them have 5 or 10 day unprofitably clauses, So they sell cloud service, dump their coins and then sell off second hand miners. Effectively selling the machine twice, and yes even GAW is doing this.
EDIT: The funny thing is the reduction in hashing power is not really showing the shut down.


#6

Oh yeah of course. I never bought any hashing on ZeusHash just wasn’t worth it. I do have to admit through that I kept logging on to the site to check out their updates to the dashboard and UI. They developed some nice stuff, shame that it was all just eye candy. The platform itself (like another platform) has great potential.

That and the “current state of crypto” is why it’s time to move from cloud mining to crowd mining.


#7

I like this statement. Isn’t that just individuals on pools, though?


#8

To much power into the system+low prices= trouble. Saw this coming long ago.


#9

It depends :slight_smile:


#10

Which one lets me mine without installing a jet engine in my laundry room? :slight_smile:


#11

LOL good question.

Got the ZeusHash newsletter earlier and apparently the SHA contracts are not being terminated but frozen until BTC goes up a bit. They also said they have new hardware coming online etc etc.

Dear Zeus friends,
Things may be a little bumpy lately since the Bitcoin price was constantly on the down side in the past week. Good news is we’ve seen it regaining momentum and we are all holding our breath for a turnaround. And we’ve brought you even better news today:

NEW CONTRACT Coming Soon

As the profits of our cloud mining contract keeps shrinking with the plunging Bitcoin price, we’ve been doubling our efforts to strike the final deal with our partners for a new cloud mining contract. And we are glad to tell all of you it will be available WITHIN A WEEK!!

The new GHS contract will be supported by much more advanced miners and lower costs for both energy and maintenance. Therefore it will be operating MUCH LONGER!! We are in the final phase of all the preparation and it’s only a week before the BRAND NEW GHS CONTRACT is coming to you!! You will be AMAZED then to find out about it!!

Good news for our CURRENT CUSTOMERS is that you will enjoy a privileged purchase of the new contract with a BIG DISCOUNT!! It’s a gesture to honor your long-term support in ZeusHash.

GHS FREEZING WARNING

Considering the dropping Bitcoin price, we issued a notice (http://news.zeushash.com/news/29) a couple of days ago to warn you not to buy more GHS contracts, as it’s not a good time for investment.
And we may have to freeze all GHS contracts when daily payouts of GHS are not able to cover maintenance fees for 10 consecutive days, according to our term of “lifetime” contract (https://zeushash.com/about).

We didn’t expect the collapse of price and we surely don’t want to cease your cloud node contracts. But if the condition for freezing GHS contracts is met, shutting down the miners will be the most ideal method to avoid further losses. We care a great about your interests. As the price climbs up a little bit, the GHS contracts are operating fine

BUSINESS ONGOING

Rumor has it that ZeusHash will no longer provide cloud node services and we want to clarify that it’s anything but true. Our efforts to deliver the best and most profitable cloud hashing services have never stopped and we hold strong belief in the future of crypto industry.

For those who spread the rumors, please come back a week later and see for yourselves? Cloud mining will continue to be an important foundation of ZeusHash Eco-System. And with your support, it will be unique and dynamic.

ZeusHash will bring more possibilities into the community and nothing will stop us from providing wonderful services to our beloved friends such as you, supported by a lot more unique features.

ZeusHash’s newsletter formatting and writing style is horrible :slight_smile:


#12

Well lets go all buy unicorns and let the pixies fuch them, we may then make BTC EDIT by the way I own the Kingdom of Fuchard


#13

I’ll just say that Terry will NOT be shutting down the miners, he’ll continue mining and YOU will not get paid.


#14

Possibly. I just shared the update. Still think their newsletter is among the worst formatted I’ve ever seen. Most likely the reason why nobody ever reads it.


#15

Reminds me of a few announcements from Mr Garza.


#16

Or every single thing he’s ever written…