One of the latest cryptocurrency MLM companies announced that it has decided to suspend daily ROI payouts due to issues with GPU mining. The company is known as BitClub and the decision has been taken due to a decline in GPU mining profitability.
Before BitClub, Kuvera Global has also decided to suspend their daily ROI payouts due to some problems with Ethereum.
BitClub informs that based on current market conditions the profit they have are negative and that they had the opportunity to hit the pause button and stop losing money.
On the matter, the company announced:
“As of October 1st ALL GPU machines have been powered off and we are freezing all mining payments moving forwards. Right now based on current market conditions the profit is negative and it looks to continue to go even more negative in the short term on just about all of the coins that we are currently mining.”
At the moment, BitClub Network affiliates that invested in the last days did not receive an ROI payout and are being offered different refunds. Additionally, users cannot withdraw any funds they have stored within the platform.
According to some reports, BitClub Network’s collapse could be related to a decline in website activity over the past eight months. For Ponzi schemes such as this one, a decline in website activity is also related to a decline in new investments. The company has clearly had to cease its activities.
Users and investors must be very careful with their cryptocurrency investments since there are several companies that are simply scams. New websites promise high returns and unbelievable ROI to users that start placing their funds in these platforms.
In the last days, we have heard about different companies that have run with investors’ funds without leaving any information. Since 2017, with the growth of virtual currencies, different scammers decided to steal crypto enthusiasts’ funds.