During the Bitcoin Expo 2015 in London this past weekend, we had a chat with one of the Cointellect representatives regarding their cloud mining service. As I am also one of their paying customers, I managed to ask some questions to which I received fairly satisfying answers. I have written down the answers in an interview format below, for your reading pleasure.
Note from the author : We also had a drink with Daniel Fonseca, the Cointellect PR Manager. However, all of the information he disclosed was to be kept off the record, so we oblige to his request.
JP : When I log in to my Cointellect account (Demo contract owner), I can only withdraw in Dogecoin with a 20% commission fee. What is the story behind this fee, and will additional withdrawal methods be made available in the future?
Cointellect : The fee on Dogecoin withdrawals is only temporary, as we are currently processing a large queue of withdrawal requests. This fee will be changed once all of the outstanding requests have been paid out. However, this fee is also dependant on the current Bitcoin price. Similar to other cloud mining services, Cointellect needs a Bitcoin value of at least US$320 in order to reduce the Dogecoin withdrawal fee.
To answer your question about additional payment methods, we have disabled Paypal payouts for the time being, as Paypal is causing a lot of problems for us. The CryptoPay withdrawal option is also available, but only to customers with a Basic contract or higher, which requires a large upfront investment. We are working on adding additional payout options in the future.
JP : How can Cointellect be so profitable in regards to their daily payouts? Your company offers a nearly fixed EUR payout rate every day. How is this amount achieved?
Cointellect : We are a multipool mining operation, and we always mine the most profitable coin at that moment. Every day after midnight, we exchange the customer’s mined coins to Euro fiat currency, and update their “collectable” balance. This is also why users can only collect their earnings every day after midnight, as this is when we execute the exchange from crypto to fiat currency.
JP : Where is the Cointellect team based out of? I believe the offices are located in Estonia, is that correct?
Cointellect : That is correct, half of the Cointellect team is based in Estonia. We even changed offices earlier this week. Our officers can be found in the same building where we have always been, but we have just completed the move to a different floor. As our team expanded rapidly over the past few months, we just needed a bigger workspace.
Cointellect only launched in June of 2014, but we have seen a great response from the cryptocurrency community ever since. Even though we anticipated a huge amount of withdrawal requests, our projections could not predict such a massive success. As a result, we had to hire additional staff, and at this very point in time, we have doubled our staff compared to when we launched in June of last year.
Other members of the Cointellect team are spread out across the globe. We have employees working remotely from South America, Greece, Serbia and a lot of other countries.
JP : One of the “complaints” we come across on social media and Bitcointalk is the delay in responses from the Cointellect support team. Can you tell us a bit more about that?
Cointellect : We apologize to people who have to wait longer than they would like before we reply to their support enquiries. However, you have to keep in mind that when you contact a major company, it can take up to several days or even weeks before you get a reply. Our staff works around the clock to answer tickets and questions in a timely manner, but people get anxious if they have to wait for 4 hours or more before receiving a reply.
This can also be attributed to the fact that we look at each ticket carefully, and handle everything with care so that our customers receive a proper solution to their question. Certain subjects have to pass through various other departments, and it can take a while before a solution has been found. But rest assured, each and every ticket will be answered.
JP : Where is Cointellect the most popular? By saying that, is there a specific country where you see a lot more interest in services offered by Cointellect, compared to other countries?
Cointellect : We are striving to become a global presence, and are seeing a great success across the globe. However, there has been a noticeable increase in customers from Russia over the past few weeks. As you are aware, Russia is not too keen on Bitcoin and digital currencies, and they even threaten to punish people who mine at home.
Cointellect offers these people a solution, as they can easily purchase a cloud mining contract which is not against Russian law (at this time). Unfortunately, getting fiat currency from Cointellect to Russian customers is proving to be a daunting task. Most of our Russian customers want to receive their funds through Paypal, which brings a set of problems with it. Paypal and Russia are not the best of friends easier, and several user accounts have been frozen over the past few weeks, negatively impacting our own Paypal account.
JP : That explains why your Paypal withdrawal option is not available for the time being, I see. Is there a solution in the works for your Russian customers, or maybe something that can benefit all of your existing customers?
Cointellect : As a matter of fact, we are working on issuing Travel Cards for our customers, which we have announced on our News page a few days ago. These Travel Cards are neither debit or credit card, but they are simply cash cards. Every Travel Card will have the Mastercard brand on them, and they will be accepted worldwide.
We still have a lot of details in regards to these Travel Cards to work out, as we currently have no official idea on the card fees, the costs for the card itself, how much commission there would be for our customers, et cetera. Many customers will be wondering what the daily/monthly limits of these cards will be, but we haven’t figured that out yet at this time.
What we can tell you is that these Mastercard Travel Card will be issued in EUR currency only for the time being. All our customers are already earning in EUR, so it makes sense to have each Travel Card operating on a balance in EUR as well. More details will be announced in the near future.
We at CryptoArticles would like to thank the Cointellect representatives for taking the time and effort to respond to some of our questions. My official Cointellect “customer” review will be coming over the next few days as well, so make sure to check back in a few days.
Website : https://cointellect.com