Bitcoin trading may not be everyone’s cup of tea. After all, it involves high risk due to its speculative nature.
Bitcoin mining is also profitable. However, its complex, costly, and time-consuming nature makes mining a no-go for most people.
Enter the notorious Planet Mining Pool (PMP Mine), an alleged blockchain cloud mining platform. Through the platform, investors can invest in different crypto-mining machines for a guaranteed daily return.
This scheme successfully captured the hearts of unsuspecting investors, especially in South Africa and Rwanda. The two countries made up around 97% of its website visitors.
However, the enthusiasm and hope of investors for a better life were crashed as the platform collapsed in 2023 – running off with their hard-earned money.
In this TRU Insights, we’ll explore the premises of Planet Mining Pool (PMPMine) and uncover their red flags. Read on and protect yourself from the likes of PMPMine.
PMP Scam at a Glance
What happened. In 2023, Planet Mining Pool (PMPMine) collapsed after operating for almost a year. Thousands of investors from South Africa, Rwanda, and other countries were left devastated as the PMPMine operator pulled out the website and disabled the platform.
What do we know. PMPMine is a Ponzi scheme that collected a minimum of USD 200 investment for an alleged crypto-mining machine. According to the victims, the agents encouraged them to buy “bigger machines for bigger returns”
Who are involved. Years after the PMPMine scam collapsed, there are still no leads regarding the people behind this scheme. However, people are speculating that PMPMine was operated by the same group of Chinese scammers that devastated the financial markets in 2021.
What Is Planet Mining Pool (PMP Mine)?
Planet Mining Pool, also known as PMPMine, dubbed itself as the world’s leading one-stop blockchain cloud mining platform. PMPMine used the website domains of pmp-mine.com and PMPmine.com
PMPMine claimed that investors can invest in their cutting-edge crypto-mining product for as low as USD 200.
But here’s where it gets interesting – the platform promised a guaranteed daily return on investment (ROI) by simply clicking on a button.
And according to the victims, PMPMine agents encouraged them to buy “bigger machines for bigger returns”
With its “get-rich-quick” scheme, the PMPMine successfully penetrated the financial markets months after its emergence. According to SimilarWeb’s traffic checker, the website became so popular that it reached around 210,000 monthly website visitors in 2023.
While PMPMine spans around the globe, its scam operation was mainly concentrated in South Africa and Rwanda.
This is a common strategy of every Ponzi scam ever – target a country with wealth inequality, exploit their desperation with a too-good-to-be-true promise, and watch the unsuspecting public to take the bait.
Planet Mining Pool Offered Investment
In the Planet Mining Pool (PMPMine) platform, investors can invest in two crypto-mining machines, namely the FIL cloud computing power M5 and ETH cloud computing power M6.
FIL Cloud M5 is the cheapest product offered, which can be purchased for USD 200. With this, an investor has a daily net income of USD 7 for 150 days. This means that the investor receives a total of USD 1050 if the investor consistently participated in the mining process.
That’s a total of USD 850 return on investment for a mere USD 200 product.
ETH Cloud M6 is the other product offered by PMPMine. For USD 500, an investor was claimed to have access to USD 16 income per day for 150 days. If the trader participated throughout the period, they gain a profit of USD 2400.
Factoring out the initial investment, a trader can allegedly have a USD 1,900 return on investment.
The Team Leader or Affiliate Payment Structure
Interestingly, Planet Mining Pool’s affiliate program presented a more lucrative opportunity than the investment itself.
Though its Team Leader program, an investor or promoter were paid by operators to recruit new members into the scheme. What attracts promoters the most was the promise of consistent income as long as they retain their members’ membership.
Familiar? This is just like any other “Robbing Paul to pay Peter” Ponzi scheme.
Here are the guidelines that contributed to the heightened penetration of PMPMine scam:
| Number of Recruited Members | Weekly Income |
| 30 members | USD 6 |
| 50 members | USD 10 |
| 100 members | USD 20 |
| 200 members | USD 40 |
| 300 members | USD 60 |
| 500 members | USD 100 |
However, the profits are not limited to what’s shown. According to the website, the bigger the team of the Team Leader, the bigger their salary is.
Red flags of Planet Mining Pool Scam
Again, the Planer Mining Pool (PMPMine) scam is just like any other Ponzi scheme you’ve seen.
But what made them successful if they exude the painstakingly common characteristics of a scam investment company?
It’s the desperation of unsuspecting investors.
When promised such guaranteed returns, investors who are desperate to improve their quality of lives blindly take the risks and dive into the pit of these scams.
Let’s have a quick overview of the common red flags of a Ponzi scheme that was very obvious on PMPMine.
- Unregulated investment product. Regardless of their form, all investment products should be regulated and authorized by a reputable regulatory body. In PMPMining’s case, all products retailed were not licensed by the Financial Sector Conduct Authority.
- Too-Good-To-Be-True Promises. Even if the investment was not a financial security, the products offered by PMPMine were still considered an investment. And when you invest, there’s no such thing as guaranteed return.
- Fake Credentials. Certificates and awards are plastered across the PMPMine website. However, all of those were found to be fake and even replicate certificates from other mining scam websites.
Avoid Falling Into the Pit of Investment Scam
The collapse of Planet Mining Pool (PMPMine) serves as a stark reminder of the risks involved in unverified investment platforms.
Schemes like PMP prey on the hopes and desperation of investors, leaving them financially and emotionally devastated.
The best way to prevent these from causing you financial ruins? Surround yourself with the right people to get the right information.
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