- in Not Approved by Caroline So
Is Mining City A Scam? [Critical 2021 Review] Crypto MLM Fraud Exposed!
Welcome to My Mining City Review!
Cryptocurrencies incorporated in multi-level marketing are not new. It’s been in the business scene for years and has been quite popular worldwide. However, not all opportunities are equal; some are legit, some are low-quality, and some are a downright scam.
Mining City Review Summary
Name: Mining City
Founders: Grzegorz Rogowski
Product Type: Multi-Level Marketing
Price: $300 to $12,600 For The Investment
Quick Summary: Mining City is a crypto mining opportunity built on a multi-level marketing business model.
Joining as an affiliate, you may gain some revenue coming from mining but in schemes like this where there are no retailable products, the real source of revenue is from investments made by affiliates. Thus, you are compensated when you get to recruit -- and that’s just one of the many red flags it has.
Overall Rating: 1/10
Having said that, we will now be examining this big crypto MLM that is quite popular in Asia called Mining City. We’ll find out if it’s legit or it’s just another crypto mining MLM fraud. We’ll also learn how it works, its pros and cons, compensation plans, and more.
What is Mining City About?
Mining City is a multi-level marketing company in the cryptocurrency niche as it utilizes the digital currency bitcoin. It’s a crypto mining opportunity that mainly targets Asian countries, such as Japan and South Korea.
It also seems to aim at some in South America as it seems to be targeting Brazil too.
Mining City was founded by Grzegorz Rogowski, which started as a project in December of 2018.
Though the company aims to target more of those in the Asian continent the owners are from Eastern Europe (Poland).
The CEO and founder, Grzegorz Rogowski has previously been involved in the marketing and media sectors of major European media brands, covering TV, radio, newspapers, and magazines.
He found a good pivot in crypto mining and roamed the world telling of the merits of cryptocurrencies.
Mining City as its name implies does the mining, which is the process of procuring cryptocurrencies and in Mining City, Bitcoin is the digital currency.
They claim that Mining City is the place where people can come and mine digital currency as well as increase the value of their initial contribution through expanding their network of associate miners. Thus, the MLM business model enters.
Mining City Product Line
As a CryptoMLM, Mining City does not sell any physical products or services. What it offers instead is the opportunity to mine bitcoins and also marketing the Mining City affiliate membership.
Is Mining City a Scam?
Mining City is a scam and there are a lot of red flags. Though they claim that you can gain through mining bitcoins but with no physical products and services, income is solely dependent on the investment of recruited affiliates.
Also, it’s a company that is not registered to sell “securities” (a passive investment), and it’s illegal to sell a security without registering which simply means that Mining City is illegally operating.
Is Mining City a Pyramid Scheme/Ponzi Scheme?
Yes, Mining City is a Pyramid Scheme.
Since, there's no retailable products or services to sell and what is really promoted is the affiliate memberships, it follows a pyramid scheme rather than a legit MLM program. Though there’s an opportunity with mining, most of the income will really come from the pool of affiliate memberships, and this is unsustainable and bound to fail.
They're not registered to sell securities and they still haven’t proven that they’re paying investors with revenue outside of recruitment. Also, like a Ponzi scheme, it is illegal wherever you are in the world.
It’s just a matter of time when the Federal Trade Commission (FTC) shuts it down.
Mining City Compensation Plan
Mining City’s Compensation Plan is lengthy and complicated. Let’s try to simplify it.
Basically, since there are no retail sales, you’ll earn from referral commissions. And also, Mining City affiliates invest funds on the promise of an ROI paid over 1100 days. The more an affiliate invests, the higher the ROIs.
You’ll gain Referral/Residual commissions from your downline and how much you’ll earn from your downline is dependent on your rank.
Mining City pays referral commissions via a hybrid unilevel model.
The hybrid nature of the model sees a Mining City affiliate paid 5% of funds invested by their first five recruited affiliates. From the 6th recruited affiliate onward who invests, 10% is paid out.
From the 6th recruited affiliate the unilevel team kicks in, and multiple levels can be earned on.
But first, here are the affiliate ranks in Mining City and the qualifications of each:
- Resident: Invest $300
- Citizen: Invest $600
- City Builder: Invest $600, recruit 5 people that invest $600, and generate $12,000 in downline investments.
- City Developer: Invest $600, have 3 people who are City Builder rank below you, and generate $60,000 in investment in your downline.
- City Manager: Invest $2400, have 3 people who are City Developer rank below you, and generate $300,000 in downline investment.
- City Chief Manager: Invest $4200, have 3 City Managers below you, and generate $2,400,000 in downline investment.
- City Mayor: Invest $12,600, have 3 City Chief Managers below you, and generate $12,000,000 in downline investment.
- Governor: Invest $13,800, have 3 City Mayors below you, and generate $100,000,000 in total investment.
Citizens receive a 5% referral commission on up to ten unilevel team levels.
City Builders receive a 5% referral commission on up to fifteen unilevel team levels.
City Developers receive a 5% referral commission on up to twenty unilevel team levels.
City Managers receive a 5% referral commission on up to thirty unilevel team levels.
Chief Managers and higher receive a 5% referral commission on all unilevel team levels.
Note that this is a coded bonus, so if a Mining City is not qualified to receive 5% on funds. invested by their unilevel team, that commission is passed upline to the first appropriate level-qualified affiliate.
To learn more about Mining City’s compensation plan, you can watch the video below:
How Much To Join Mining City?
To be part of this Crypto MLM opportunity and avail of its compensation plan, one should choose from the following investment levels placed below, as joining Mining City is tied to an initial investment.
- Primary ($300)
- Standard ($600)
- Bronze ($1200)
- Silver ($2400)
- Gold ($4200)
- Platinum ($12,600)
I’d like to commend them about their transparency when it comes to their founder and other info about Mining City but other than that there is really nothing to like about Mining City or to what it can offer. It comes with deceptive claims that may lure you so don’t be fooled!
Unregistered To Sell Securities
To be registered on selling “securities”, companies must prove their revenue sources and how they're paying their investors.
As with Mining City’s case, it is not registered to sell “securities”. So, if they still sell such passive investments, it simply means that they are illegally operating. And if you’re an affiliate promoting the company, you’ll also get in trouble.
Pyramid & Ponzi Scheme
Mining City is fraudulent in many ways. It may entice you with big ROIs from your passive investments but since there are no retail products, the money from the affiliate memberships will be the pool of income instead.
You’ll also opt to recruit and recruit to earn more and level your rank, and for me, this recruitment hype is a terrible way to make money.
Also, as discussed, it’s unregistered to sell, so basically it’s operating illegally! They’re misleading people on how they make money and if you sign up, you’ll probably lose your money.
It’s a scam! Don’t be fooled and deceived.
Yes, your investment will be worthless because you’re bound to lose your money in the end. You might think Mining City is worth something but again, as an affiliate, you may end up broke and frustrated because you're not taking a hold of your invested money.
Since the sole source of income is from recruitment, it will just continue to be rolled around the company until there’s no more to be drawn if a time comes that there are no more recruits.
This kind of scheme is indeed unsustainable and guaranteed to fail.
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Being an affiliate in Mining City, you’ll have access to their back office along with materials and resources you’ll need in your crypto MLM venture.
MIning City provides quality infrastructure backed high-performance cloud computing services for Mining City, which even those who are just visiting the website could also access.
Contact support is also available.
Mining City might be intended for those who are into cryptocurrencies and those who are adept with MLMs. But because it’s a scam, it’s good for no one!
Yes, the website domain of Mining City is pretty much transparent, equipped with data and valuable information for those who would want to know about crypto MLM but of course, they would not place the truth they are operating illegally.
Indeed, it’s another CryptoMLM fraud enticing you with the promise of ROIs but in reality, would take up all your money. The worst part is that you won’t get your invested money back.
Since it works as a Ponzi scheme, it’s gonna be unsustainable and bound to fail. It’s also very expensive to invest, so don’t wait to waste a heaping amount of money for nothing.
It may have been operating for nearly 3 years but they can’t still prove their legitimacy. They are even not registered to sell and it seems like the government is blindsided by this. So when this does collapse and when affiliates lose their money, there's nothing they can do.
But I believe in due time, the truth will really be seen by people and it’s only a matter of time when the FTC shuts them down for good. So better skip this platform as early as you can and not end up getting scammed!
So my verdict, obviously, is that I don’t recommend Mining City to anyone.
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Thank you for checking out my Mining City Review!
I hope you will consider checking on an opportunity before signing up to avoid scams and if you have questions or comments, please feel free to share it below.