Is CoinDump Legit???
Is CoinDump Legit???
Mendo Crypto
May 25, 2018
I've been exploring CoinDump.biz for the last few weeks. It's interesting and I'm still hopeful that the project will prove to be legit. However, there appear to be several people on Bitcointalk who are skeptical as I am.
Nonetheless, in the impossible quest to explore the entire crypto landscape, I've stumbled upon CoinDump and I'm fascinated to explore their model and to better understand the nuances which may help us distinguish between great investment opportunities and possible scams. The concern I most often see expressed in comments threads is that projects which require initial investment and promise high returns must all be Ponzi schemes. So, I revisited the definition of a Ponzi scheme:
It's sort of alarming to apply that definition to the majority of projects in the crypto world. I see it as having two components:
"belief in the success of a nonexistent enterprise"
"quick returns to the first investors from money invested by later investors"
The core component of CoinDump's model appears to be the following return formula:
BTC is added every hour by your sum of BTC and DBTC multiplied by "Yours speed" over (24 * 100). BTC and DBTC appear to have the same value and I'm unclear on the need for DBTC. "Yours speed" is in reference to the speedometer which appears prominently in the user dashboard and appears to be connected to a user's referral stats and social media promotion of CoinDump. Let's simplify the formula to a daily computation more directly connected to a real world value. For the sake of illustration, let's say we're starting with 1 BTC.
1 BTC * ("Yours speed") / 100
Right now my speed is 0.6% (it's experiencing a little boost from some social media shares).
There are 3 user types each with a unique default "Speed per day". New user is the free default setting, at 0.05% "Speed per day". Verified account (what I presently have) requires you to pay a one-time fee of $10 and increases your "Speed per day" to 0.3%. Super user requires a $100 payment and boosts "Speed per day" to 2%.
Payments are processed through free-kassa, and it appears to work, even though it looks and feels a bit shifty.
After depositing 1 BTC and paying the $100 to upgrade to the Super user account, returns might look something like this:
1 BTC * (2) / 100 = 0.02 BTC per day
Earning 2% per day is pretty amazing! Now consider that it's compounding daily too... hourly actually. Let's add the full formula back in.
BTC is added every hour by the formula:
Yours BTC balance + Yours DBTC balance * (Yours speed / (24 * 100))
Example: In an hour you would receive 1.0 * (2 / (24 * 100) = 0.0008333 BTC (That's 2% per day!)
I can't imagine it being sustainable to compensate users 2% per day. So, how does CoinDump intend to keep the BTC flowing? I'm very curious. It seems like it could be a risky venture, so I'm continuing to accumulate CD tokens for completing social media tasks and waiting until I've reached the 1000 CD minimum withdrawal limit before I consider investing more into CoinDump. In the meantime, every few days there's a new opportunity to earn some CD tokens and increase your "Speed per day" by sharing social media posts.
If you would like me to explore the Super user setting to see if it really pays 2% (and what happens after 50 days), please consider sending me some BTC to cover the cost of upgrading and I'll also experiment with the CD mining option which is presently only available for Super users.
BTC:
3E9vGoVcbn9Bn4Ve2oFjga8prQKwMY5hf1
This notification is showing on the website now and it appears that they have an exchange listing of CD coin lined up for September. I'll continue to update you with the latest on my experience with CoinDump!
See You On The Blockchain!
-MendoCrypto
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