MaxiMine Coin Jumps 43% Into Top 50; Where Next for Cloud Mining Alt?
MaxiMine Coin recorded 43% growth moving into Sunday, and pushed the MXM token up and around the top fifty cryptocurrencies by market cap.
This comes just days after MaxiMine Coin rose to its highest ever valuation to date – recording spectacular 4,169% growth between February and April… before subsequently crashing and burning with similar spectacle.
Now that MXM appears to be on the rise again, let’s take a look at this cloud mining altcoin and see whether it stands a chance of holding on to its recently gotten gains.
What is MaxiMine Coin?
From the MaxiMine website, the project is summed up as:
“… a highly efficient and transparent cloud-based pool mining platform. Users receive a portion of the MaxiMine pool rewards by staking the tokens that they own for hashing power.”
With Proof-of-Stake blockchains, the security of the blockchain is achieved by users staking their coins in return for a portion of percentage of the block rewards. That’s not quite what happens with MaxiMine, where instead you buy hashing power credits in the form of staked MXM tokens.
MaxiMine is essentially a cloud mining contract provider based on the Ethereum blockchain. From the whitepaper:
“Although it is a cloud mining service, the main differentiating factor for MaxiMine is the staking process, instead of a traditional fixed cost and payment, investors are required to deposit capital for the duration of the mining contract, resulting in minimal capital loss incurred in mining.”
The whitepaper notes that MaxiMine has ‘technology headquarters’ in the U.S and Singapore, and plans to open mining farms in several locations around the globe – the largest being in Xinjiang, Northern China.
The first mining farm was roadmapped for construction in September 2018, and was planned to contain 40,000 Antiminer S9i 14T’s. The roadmap also notes that the first payouts for MXM stakers was expected in November of the same year, although I can’t find any confirmation of this at the current time.
MXM Price: The 4,169% Rise
From the late February valuation of $0.003512, the dollar price of MXM tokens rose 4,169% moving into early April, landing at an all-time high of $0.149955. That was enough to put MaxiMine on a market cap of $240 million – making it a top thirty cryptocurrency for a short time.
Trying to ascertain what caused MXM’s miraculous surge isn’t easy. The token was listed on several small exchanges in that time, and BitForex announced in late March that it would also be listing MXM.
However, that doesn’t tell us very much since BitForex is largely thought to be one of the worst exchanges for posting fake trade volume. Likewise, the other exchanges that MXM is listed on also nurse reputations for being less than honest, such as HitBTC and Coinbene.
It’s unclear from the documentation whether the mining payouts come in the form of MXM or other cryptocurrencies. If it’s MXM, then it’s hard to imagine many people having benefited from mining payouts at this point, given the lack of serious liquidity.
The Drop: MXM Loses 69% in 1 Day
MaxiMine’s fairytale pump came to an end on April 3rd, when the token price plummeted. By the next day MXM’s value had dropped by 69%, as the dollar valuation sunk from $0.149955 down to $0.046378.
That was just over a week ago, and in the last 24 hours the trend reversed again as MXM rebounded from the depths to record another 43% growth, returning to the $0.07 range. If CoinMarketCap’s trade volume of $20-30 million is to be believed, then between 25-30% of the MXM circulating supply has been changing hands for the past week, which seems unlikely.
Watching a coin pump over 4,000% in price over two months is bound to draw some eyeballs, and indeed, offering cloud mining contracts seem like a viable business model amid rising equipment costs and hashing difficulty.
Just recently it was revealed that when MXM holders tried to transfer their tokens from HitBTC to Coinbene, the tokens never showed up at their receive address. This announcement from MaxiMine details how HitBTC apparently hadn’t performed updates necessary to transfer the tokens. Now, 18 million MXM tokens ($1.3 million) are being held back by HitBTC and according to MaxiMine, the exchange is unwilling to perform the updates required to move the coins.
Notably, this announcement was made on the same day that the coin price sunk like a stone. This, coupled with the ridiculously high fake volume coming from exchanges like Coinbene, illustrate why it may be better to wait until the dust settles before going anywhere near MaxiMine.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.