ZeusMiner Cancelling Volcano, Focusing on Cloud Mining

1 Nov
2014

zeusminer-volcano-scrypt-asic-miner

ZeusMiner has officially announced that they are canceling the Volcano project for a 300 MHS Scrypt ASIC miner that was supposed to be released by the end of the year. This announcement does not cover only the Volcano miner, but also the GEN III upgrade boards that the company was offering as an option for December upgrade to customers with existing miners that were supposed to be based on the same new hardware. While pre-orders for hardware miners are something that has become quite risky and not many people are still interested in making such because of the lot of uncertainties about the price of LTC. Still the Volcano looked Ok, but the upgrade boards were actually more interesting for many people that have already bought older ZeusMiners as they were a good means to bring your old hardware up to date in a few months time when the initial hardware you bought may not be worth mining with anymore. However the people that actually did pre-order hardware were the ones wanting to get their hands on the Volcano miner sooner, the ones interested in the upgrade boards would probably have waited until they were released to order them directly.

The reason that ZeusMiner gives as to what lead to the decision to cancel the further development of the Volcano and the new chips is that apparently most of the people want to start mining now and not wait for hardware for about two more months. The current not so favorable market situation with crypto prices keeping low and the difficulty continuing to rise is apparently why they have decided to halt the production of Volcano and GEN III Chip Blades. The good news is that unlike many other ASIC manufacturers they did not use the money from pre-orders to fund the research and development of the new chips as according to ZeusMiner all funds, which had been required for the R&D and production of Volcano, have been taken out of their own pocket. The money which they have received from the Volcano pre-orders (USD, BTC, LTC) had been set aside in secured accounts from day 1 and is still available to be returned to customers. So there should be no problems with getting a refund, should you decide that is what you want, something that is way more important than to give false promises and intentionally delay or refuse to return money to customers even after failing to deliver on promises like we’ve seen from some companies already.

We have never been too keen on pre-orders of mining hardware and we’ve liked the fact that most of the Asian manufacturers of ASIC miners who were actually announcing products when they are already available for sale, unlike such companies from Europe or USA that love to take pre-oroders. Lately however we have seen that many of these Asian companies have also been tempted to offer pre-orders for hardware that is not yet ready for sale and that usually does not lead to good things as we’ve already seen. Companies usually tend to not fulfill their initial promises due to hardware production delays, issues with software and so on when they take pre-orders. So even if we are not too happy with the decision of ZeusMiner to stop the development of the new chips, they are at least doing it the right way – coming clean to users and offering an alternative or a full refund in a timely manner.


The people that have pre-ordered have two options now:

1. Transfer your Volcano/GEN III Blade order to ZeusHash with 10% discount and ZERO maintenance fees for 2 week. Discount is applied based on our Halloween Special. For example if you purchased 1 Volcano for $1,600 (plus shipping), you will be able to convert it to INSTANT ZeusHash HASHING POWER at $0.503 (1T – 9.99T range, $0.559 originally) per GHS or $ 11.691 (>1G, $12.99 originally) per MHS.

2. Refund of the FULL AMOUNT (USD/BTC/LTC) in the same way we have received your payment + 10 or 5 GHS on ZeusHash as FREE GIFT FOR YOU. All Volcano and chip blades customers will get an email from our CS team to confirm your option. If your order contains at least 1 Volcano, we will put 10 GHS into your ZeusHash account. If you ordered only Blades, 5 GHS will be given. All the transfers and refunds will be done within 2 WEEKS. If you purchased from one of our distributors, please contact our distributor for conversion/refund.

Reinvesting the money you might have spend for a pre-order into the ZeusHash cloud mining service may sound like a good idea to some people, but to others it seems it is not as they will be limited to mining only either LTC or BTC directly. With a physical ASIC miner in hand you have the options to mine many other alternative crypto coins and that is one of the biggest advantages compared to cloud mining with most such services. The good thing is that you can get a full refund of what you have actually paid and maybe invest the amount in another of the announced Scrypt ASIC miners available for pre-order as an alternative option, that is if you still want to give money ahead of time to someone else.

We already know that ZeusMiner is not making Bitcoin ASIC miners, however the company is also offering Bitcoin cloud hashrate for miners. To realize this feature they have partnered with some other ASIC manufacturers to supply them with the required hardware to back up the hashrate they sell to users. The same approach will probably be implemented for the LTC hashrate as well now that the company will not be finishing their next generation of chips as they have initially planned. We have asked ZeusMiner how they plan to back up their cloud service over time with faster and more energy efficient hardware and the answer we’ve got is that they are working with some partners using their expertise in chip and product design to further reduce cost as well as power consumption so that ZeusHash wouldn’t be affected. So we may soon see some more announcements for partnerships with other companies making Scrypt ASIC miners, and we are going to continue following the further development. Feel free to share your thoughts on the subject even if you have not pre-ordered a Volcano or an upgrade board with GEN III chips in the comments below.

For more information about ZeusHash and their cloud mining prices and services…



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8 Responses to ZeusMiner Cancelling Volcano, Focusing on Cloud Mining

dean

November 2nd, 2014 at 16:38

I see this as a potentially big opportunity for gaw miners to come out with the upgrade chips and make a nice profit.

websdatacenter

November 2nd, 2014 at 22:54

I am one who pre order my blades for my thunder x3’s. What I find funny is terry from zeus mining states we never had the board made . Yet they have photos of the newer boards on the zeus website , or maybe that was false aswell and it was just an image from something else. I was assured in every single email from the company that they promised this would ship in December. I never received any email asking if I wanted to or showed any interest in cloud based hashing. All I wanted along with the other users was to upgrade our thunder x3 and other zeus miners. I still havnt received my refund. I still havnt received the free gift of free hashing they promised. And to top it off the refund is charging us a miner fee to return the coins we paid to them.

so 1 I didn’t get my blades as promised over and over again.

2 still no refund

3 no gift they said they would give us.

4 miner fee. not return the same amount we paid them for the blades.

5 I have lost money in this deal because of the ltc value.

What I believe is going on is this. Zeus mining hired this so called outside audit person to look over everything. This person told them that they would be loosing money on this deal because of the value of the coins is going down. So they pulled everything and going to send back all the coins so they do not go belly up of a company.

Just really upsets me that I was lied to over and over again.!!!

Terry states that the blades never made it to ptoduction. How could that be when they stated in a email to me that they were testing the completed blades of the first batch ran and everything was looking good for a December shipment . Lies lies lies.

!!!!!

Philippe

November 3rd, 2014 at 06:15

i pre ordered a volcano and multiple blade upgrade. i was so pissed off when i read the news on their website.. this is bullshit, i do not want cloud mining hash rate power. i want what i ordered and i lied to me too by email saying that they were testing the volcano and blades.. i think that they couldn’t make 300mh with 1000w and that if they would have kept going with the miners they would have lost too much money because of all the promises they made in terms on the specs and delivery date.

dreddjudge

November 3rd, 2014 at 17:09

Vaporware and it looks like they are following in the footsteps of GAW. Remember the Vault Breaker? Right, never existed just like the Volcano. Now they go into cloud big time just like GAW. At least we know Zeus CAN make hardware unlike GAW but still, this sucks.

david

November 4th, 2014 at 01:26

I am one who pre ordered my blades 3 months a go for my thunder x3’s and now thay pull this shit out of a bag and say we regret that we will not be going ahead with the delivery of the next gen miner and blades after 3 month later i am pissed
with zesu for this and i think i speak for all those how have pre ordered the product thay have defiantly lost a lot of custermers from this crap. i no i will not perches anything from them i just wont my money back and i will spend my money ells ware

Artur

November 5th, 2014 at 06:34

Hi guys,

Please contact me at “apippone1 at gmail “. Lets figure out a LAWSUIT.
I’ve lost 2 months, 30% on BTC value, opportunities, and instead get only “thank you for your support” from CEO.

In short Zeusminer used opportunity at expense of consumers and not compensating us accordantly:
– Zeusminer used our money for 2 months free and we lost (i.e we could invest money in “zeushash” 2 month ago and have cash flow)
– Zeusminer used our money to develop Volcano cheap and now use it for “zeushash”
– Zeusminer offered “conversation” from original $5/Mhz to $15/Mhz = 3 times lost of value
– Consumers who payed using BTC lost 30% of value as refunds are in BTC – it’s possible that Zeus made refund on purpose to explode BTC deprecation as well
– Zeusminer have not asked consumers. it’s made up to justify cancelation! “80% of the Volcano pre-order customers” is “The analysts estimated”

Thanks,
Artur

baldpope

November 5th, 2014 at 18:03

This is very disappointing. I too was anticipating the blade upgrades to replace the aging fury’s and thunder x3. the price for upgrade was FAR more attractive than the hosted mining.

Comparitively speaking they advertised/sold $5/MHs which would also afford me the ability to mine any number of scrypt coins (in addition to merged mining), and instead pretend to know that I’d rather used hosted mining – which simply isn’t true.

In addition to only being able to mine LTC and having to pay a fee to mine – I also am paying more than DOUBLE the advertised rate.

No thanks.

LTCmandingo

November 6th, 2014 at 09:40

anyone else basically see that Zeus minor took all the money used it for development costs so they can build their cloud infrastructure and then after that it was fully subsidized and ready to generate revenue they flipped around announce that they weren’t in fact going to sell the hardware that ultimately we all paid to develop. That’s some pretty shady stuff. I hope all minor comes out with a custom board replacement for the Sun Direct stories there’s a lot of money to be made there

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