Finding a legitimate cryptocurrency cloud mining service has proven to be difficult. The number of legitimate companies can be counted on one hand. Some people feel that Coinomia is one of those legitimate companies. However, one user has reached out to us to tell a different story. This is a second-hand report, and we will continue to monitor the situation as it develops.

What is Going on With Coinomia?

According to the Coinomia website, the company has been around since 2014 and provides legitimate cryptocurrency cloud mining services. Its domain was registered in April of 2014 and belongs to the Coinomia Technologies Ltd. company located in London, England. It is rather odd how its contact email address is a Gmail one, but that itself is not a glaring red flag.

Coinomia specializes in providing both Bitcoin and Ethereum cloud mining. Contracts are more than affordable, as their cheapest contracts start at just $100. The more expensive contracts range from US$1,000 to US$10,000, depending on the amount of mining power one wishes to purchase. More expensive plans also have a higher referral commission, which is always somewhat strange to note. In most cases, this is a sign of a Ponzi scheme waiting to collapse.

The Coinomia website claims the company’s mining operations are located in India and China, due to cheaper electricity rates. The company does not provide more specifics, nor do they have any evidence to back up these claims. No pictures or videos of the mining setup are publicly apparent, which immediately raises a lot of questions. They are allegedly mining with Bitmain hardware, although that claim cannot be verified either.

Things took a turn for the worse when a Coinomia user reached out to us and informed us about the company acting somewhat strangely. After months of regular payouts, it seems things have dried up a bit. Projected returns were lowered by one-third midway through this user’s contract. That is only normal in the grand scheme of things, given the volatile Bitcoin price trend. However, Bitcoin is still at a more-than-comfortable value which would not warrant such a cutback. The company sent out an email to users informing them of the cryptocurrency market cap decline at the end of April and early May.

Last week’s cryptocurrency dip forced the company to cut payouts by another 30%. Even though the markets are recovering, the company is maintaining its lower rates until further notice. This move was allegedly done to “preserve the longevity of the company.” These changes do not affect commission payouts, which raises some red flags in our book. It is difficult to determine whether or not this constitutes a scam, since the company is still paying out users.

Something is not adding up with Coinomia. The cryptocurrency markets have taken a hit, and a cutback could be justified. However, the Bitcoin price is still well above $2,350, which should allow any legitimate cloud mining company to maintain its payout structure without question. After all, a 30% reduction means that the company requires a Bitcoin price of $3,200 to maintain the previous structure.