Almost all the legitimate businesses in the cryptocurrency field is present on bitcointalk.org, so any user can evaluate, ask, criticize, thank, etc. We also made a topic about ZAGTOR because we believe that our partners and our future partners contribute to our business development.
In less than one hour after we posted, a bitcointalk user accused us for “almost sure to be scam!” The accusations were made based on another bitcointalk topic: Cloudmining 101. The topic is very helpful for anyone who is planning to invest in a cloud mining company. It contains 8 important points to ask yourself before investing in a mining company.
Just to clarify some doubts you might have, we responded to each point from Cloudmining 101.
1. No public mining address / no user selectable pool - A cloud mining company that won’t let you direct the hashrate to your pool of choosing and can’t prove it’s actually mining bitcoins itself, is very likely a scam. There is no reason to hide mining address or not sign blocks. None.
ZAGTOR answer: For the security of our investment and of our partners, we do not publicize the exact location of our farm, but we do publicize the location of our office: Romania, Sibiu, Regele Ferdinand street, no. 4, a phone number +40751942288, where you can call us and we can talk directly (also found on ZAGTOR website). However, if you want to visit our farm, we can organize a group meeting available for anyone who is interested.
2. No endorsement from any ASIC vendor - ASIC vendors will gladly make a simple post to show the company in question is a significant customer of theirs. Its free advertisement for them and it helps their customer grow their business, so there is absolutely no reason they wouldn’t. If a (cloud) mining company can’t get any ASIC vendor to post such endorsement, you should assume they don’t have any hardware to mine with.
ZAGTOR answer: We don’t use ASICs for mining. We use 80 GPU’s bought over a period of approximately one year. It was cheaper for us to buy them locally (from online shops: www.pcgarage.ro www.cel.ro) and yes, we have all the invoices for every single hardware.
3. No relevant pictures of their hardware and datacenter - There is no reason not to provide such pictures, except of course, if there is nothing to take pictures off. Mind you: pictures can be faked. Pictures don’t prove current ownership. So like all criteria listed here, by themselves they are by far insufficient proof.
ZAGTOR answer: We are currently working on this. For marketing purpose we didn’t published any photos as the farm location requires a renovation. As soon as the renovation is complete we will hire a professional photographer and post the photos on the blog. We took photos from our office, not from our mining farm. As you can see we are not professional photographers, we handle the keyboard, not the shutter button:
4. Open ended IPO/fractional reverse mining risk - Unless the cloud mining is operated by the ASIC vendor himself, you can’t sell an unlimited amount of hashrate. Hardware takes (usually a long) time to order, arrive and deploy. Any company that doesn’t limit sales or make public how much hashrate they sold vs. what they have (provably) deployed should be considered suspicious.
ZAGTOR answer: Our current hashrate is around 46000 H/s (calculations made in CryptoNote). Please keep in mind that we mine the most profitable coin based on a weekly analysis. We use at least two different pools for each coin.
5. Referral programs and social networking - Referral programs, especially ones that pay almost 10%, are a huge red flag. The mining market is cut throat with razor thin margins. No real company can afford to pay 10% referrals on below market cloudmining prices. Referral programs almost always serve only to feed the Ponzi and provide financial incentive to posters to lie about the true nature of the company. Never trust anyone with a referral link in their sig.
ZAGTOR answer: We are giving 2% to the referral user. It is the maximum amount we can afford at the moment. The referral program was made for marketing purposes.
6. Anonymous operators - If the operators are hiding behind whoisguard, provide no provable identity and especially when, like in some cloudmining cases, they use demonstrably false ID or company registration information, you have to be nuts to trust them with your money.
ZAGTOR answer: In the mining agreement you will find all the legal details about our company.
7. No exit strategy - If you can’t sell your position, you can’t get your money out. That’s the ideal case for a Ponzi and allows it to run for a long time.
ZAGTOR answer: The contracts we offer have a 1 year period. If in the first month the user is not pleased with our service we agree on offering a refund for the remaining period.
8. Bonus point for “guaranteed profit” - If anyone guarantees you a bitcoin denominated profit, and especially a +30% one, you can be sure it’s a Ponzi, all the other criteria become unimportant. There is no such thing as certain profit when it comes to mining, no one knows how the network will evolve, or what btc exchange rate will do. If anyone could somehow be certain of making a 30% profit, they wouldn’t need your money (and they wouldn’t give the profit to you).
ZAGTOR answer: We can't guarantee a specific amount of return of investment. We suggest to all of our partners to do their research.
We appreciate anyone who is not sure about zagtor.com, before making “scam accusations”, to contact us of any questions or doubt may have.
Here is the full topic: Bitcointalk