Cointellect remains a cloud mining company surround in mystery, complaints from customers and multiple questions regarding their contract payout structure that seem to remain unanswered for the time being. Late last night, their team posted a new update in regards to the freezing of all withdrawals and the immediate change of contract’s earnings to reflect the current Bitcoin price.
All Withdrawal Methods Temporarily Unavailable
In our previous Cointellect articles, we already mentioned that the Paypal withdrawal option has been disabled for a while, and CryptoPay was only available to customers with a specific contract or higher. Needless to say, being stuck with one withdrawal option available to anyone, which is subject to a 20% withdrawal fee on top of that, did not go over well with the crypto community.
To make matters even more dire, Cointellect has temporarily disabled the Dogecoin withdrawal method, as their system is undergoing some major changes. There is no official ETA as to when withdrawals will be enabled once again, or whether we might see additional withdrawal methods added in the near future.
“We do want to emphasize that our team understands the frustration and inconveniences these recent changes may pose. Cryptocurrency mining is an unpredictable business with many risks. We do ask our users to remain aware of these risks and approach the industry with reason. As a mining service provider, we are caught in the midst of the recent economic turbulence and have little recourse outside of our recent platform changes. Despite the inconveniences, we are confident our plan of action moving forward is greatly preferable than those of our competitors.” – Cointellect Staff
Contracts Being Changed On The Fly
Existing contract holders might be in for a rude awakening once they found out that their daily payout amounts have been reduced to reflect the current Bitcoin price. Do not panic just yet, as every contract is still “scheduled” to let you ROI relatively quickly and start earning profits from that point forward. That is, assuming withdrawals are re-enabled in the near future.
Demo, Starter and Pilot contracts will be phased out eventually and replaced with variable contracts. This means that Cointellect will only offer contracts of 50MH/s and more in the near future, while the 5MH/s, 10MH/s and 25MH/s contracts will not be available anymore. No official details have been provided in regards to these variable contracts at this time.
The bottom line is that every CoiNtellect contract owner will earn 50% less on a daily basis compared to previous contract terms. While everyone knew these prices were no longer sustainable – and many questions arose as to whether or not these payouts were only occurring because of a possible ponzi structure – a 50% pay cut without having any say in the matter or any advance warning is not acceptable.
Mining ASIC-resistant Coins
Cointellect also plans to start mining ASIC-resistant digital currencies in the near future, compared to just mining Scrypt coins. This change will work similar to a multipool structure, as Cointellect will keep mining the most profitable coin at all times and maximize daily revenue for all parties involved. No further details as to when this will take place, or which coins will be mined, was released at this time.
A lot of people will be even more unhappy with these Cointellect changes, myself included. Even though I understand their payout cut (business-wise that is), the way they have gone about it irks me. I sincerely hope this is the beginning of a turnaround for Cointellect, but it remains to be seen whether or not this will be the case.
Source : https://cointellect.com/news/