Website & Company Information
The web domain of the company was registered privately on the 21st of October 2017 and was later updated on 2019–02–17. The company claims that it has been paying since 2017. They are able to make this claim because they can back it with the website registration date.
But since we own numerous sites, we can say they started in February 2019. Let us explain this with an example:
Suppose you bought a domain named 123xyz.com in 2017 and the registration expiry happens to be 1 year, i.e, 2018. If you fail to renew your domain and do not pay for the renewal, then you will lose that domain, and it will be parked for sale.
Now suppose, if you or anyone in the world wishes to buy that domain again, then they can easily do it since it is parked for sale. So if you bought back that domain in 2020, then the following will be the domain registration information:
Creation Date: 2017-xx-xx
Updated Date: 2020-xx-xx
Following is the domain registration information for virtualmining.farm
We also couldn’t find any information about the owner or the team of the company. All we know from its Terms and Conditions page is that it is governed and construed in accordance with the laws of the British Virgin Islands
Note: British Virgin Islands is an MLM friendly jurisdiction with little to no regulation. Anybody with connections can open a shell company in that region.
Virtual Mining Farm’s Products
Virtual Mining Farm has no retail products or services, with only an MLM plan that pushes its affiliates to market Virtual Mining Farm’s affiliate membership.
Retail products are one of the legal requirements in many countries around the world to be a legitimate MLM run company.
Virtual Mining Farm’s Compensation Plan
The company accepts bitcoin as an investment. But there isn’t any investment plan listed on the website. We created a fake account on the site to see how the internal dashboard looks and if we can get any investment plans there.
Price per 1000GHS mining power(minimum investment) is 0.00034785 BTC or 3.02 USD. The daily ROI on this investment is 0.00000780BTC or 0.068 USD.
That’s around 2.3% daily profit. Some serious absurd gains!!
The company pays referral commissions on initial investment and residual commissions on withdrawals, both via a unilevel compensation structure
The referral commissions on downlines are capped at 30 levels:
- level 1 (direct recruits) — 10%
- levels 2 to 30–0.7%
The residual commissions on downlines are capped at 5 levels:
- level 1 (direct recruits) — 20%
- levels 2 to 5–0.5% to 5%
Joining Virtual Mining Farm
The affiliate membership of Virtual Mining Farm is free. However, the minimum investment to join the income opportunity is $3.02 or 0.00034785 BTC
Virtual Mining Farm’s website doesn’t provide any information about the incorporation of the company. At least an incorporation certificate would help.
We are just left with a choice to assume that the company is not registered at all.
Virtual Mining Farm also fails the Ponzi logic test because if the owners are able to make 2.3% daily ROI, then why would they need any external money? Shouldn’t they be competing with Bitmain and Antpool (world’s biggest mining farms)
Virtual Mining Farm is yet another ‘anonymous service’ where they take your money in the name of Crypto Trading, Crypto Arbitrage or Crypto Mining — while their only source of income is the new investment.
These schemes only pay when there is a stable inflow of cash through new recruits. Once the new money coming into the system slows down, they will stop honouring payouts.