Table of Contents
The new cryptocurrency investment platform known as GB21 goes by the name GB21 and makes the promise that it can provide substantial returns on investments made in the form of bitcoin mining contracts. Concerns have been raised, however, that the site could really be a Ponzi scam. Specifically, the site is advertising mining contracts with a total value of $450,00 that are expected to create big rewards for investors. In the following analysis, we are going to take a more in-depth look at GB21 and the mining contracts that it is pushing in order to establish whether or not these contracts are legal.
Background on GainBitcoin:
GainBitcoin is a bitcoin mining firm that was established in 2013. The company’s first year of operation was in 2013. There were rumors that the firm was operating a Ponzi scam, despite the fact that it purported to provide cloud mining contracts for bitcoin. In 2018, the Indian authorities conducted a search warrant at the headquarters of GainBitcoin and detained many of the company’s partners, including Gainbitcoin’s founder Amit Bhardwaj. It was alleged that Bhardwaj was the mastermind of a Ponzi scheme that bilked investors out of millions of dollars.
Bhardwaj continued to promote GainBitcoin via a variety of venues, including social media and YouTube, notwithstanding the charges that were brought against him. In the year 2021, he introduced GB21 to the marketplace as a novel cryptocurrency investment platform that makes the promise of being able to generate significant returns on investments through mining contracts.
Contracts for Mining:
GB21 is promoting mining contracts as an investment opportunity as one of the investment alternatives available. On the website of the organization, it is said that potential investors have the opportunity to acquire mining contracts for an amount of up to $450,000, each of which promises to create considerable returns over the course of time.
The firm claims that it is able to mine cryptocurrencies more effectively than its rivals as a result of the “state-of-the-art technology” and “advanced mining algorithms” that are included in the mining contracts that it offers. In addition, the firm claims that it has established connections with top mining pools, which contribute to an improvement in the profitability of its mining activities.
Bitcoin and other cryptocurrencies may be transferred into an investor’s GB21 account in order for them to acquire mining contracts. The organization claims that investors may get a return on their investment of up to sixty percent in a period of one year and eighteen months.
Problems with GB21:
Both the mining contracts that GB21 is trying to promote and the organization itself have a number of problems.
To begin, there are rumors that GB21 is a rebranding of GainBitcoin, a company that was previously implicated in operating a Ponzi scam. The fact that the firm’s creator, Amit Bhardwaj, was also the founder of GainBitcoin raises issues about the authenticity of the new platform, despite the fact that the company maintains it has no relation to GainBitcoin.
Second, one of the most recognizable characteristics of Ponzi schemes is the assertion that investors would get a significant return on their money invested in mining contracts. The profitability of mining is dependent on a number of factors, including the price of a cryptocurrency, the difficulty of mining, and the cost of electricity. Legitimate mining operations do not typically offer such high returns on investment because the profitability of mining is dependent on these factors.
Thirdly, there are some questions about the veracity of the relationships that GB21 claims to have with the most prominent mining pools. Since the firm does not present any proof to support these collaborations, it is not apparent whether or not these partnerships genuinely exist.
Concerns have been raised about the registration of the corporation with the government of the UK, which is the fourth issue. There is no evidence to substantiate the assertion that GB21 is a registered business in the UK, despite the fact that they make this claim. In addition to that, it seems as if the company’s registration number was forged.
Finally, there have been complaints from investors who claim that they have been unable to withdraw their monies from GB21. These investors say that this has been a problem for them. When they recognize they have been taken advantage of by a Ponzi scheme, victims sometimes discover that it is very difficult, if not impossible, to get their money back. This is a typical complaint among Ponzi scheme victims.
On the basis of the material that has been provided, it would seem that GB21 and the mining contracts that it is pushing are likely part of a Ponzi scam. There are doubts about the authenticity of the company’s relationships and registration with the UK government, and the promise of huge returns on investment via mining contracts is just too good to be true.
You may also read Crowd1: Arrests made in India of promoters