You May Want to Stay Away From Giga Watt’s Services

16 Mar
2018

Last year when Giga Watt (the former MegaBigPower) announced their WTT token sale we were pretty excited about it and not only participated, but spread the word about it. With the good track record we were expecting big things to happen, but now, 9 months later we are really disappointed from our experience with Giga Watt in general and would want to warn everyone to stay away from their services. It is all but a delay after delay after another delay and things not happening for months after they take your money and in the world of crypto delays with months are not something that anyone wants as things change quite rapidly.

Let us see why we are not happy. First we were promised tokens that represent actual power capacity in the Giga Watt facility, of course they needed some time to build that capacity, so as a result there were more than a few month delays until the release of all of the tokens. Unfortunately letting users know how is development progressing during all this time has been less than well done with just a few scarce updates instead of constant updates on progress. We were promised market for these tokens that would allows us to profit from holding and leasing them to users needing power to host their miners and if there is a demand we could get higher price. Well, guess what, even at the lowest price of 4.2 cents you are not able to rent more than 60% to 75% of your tokens, regardless of how many they are and this has been like that from the start months ago.

In the end you have some 30 or more percent of your tokens free all of the time, so why not purchase some of the miners sold by Giga Watt and have them hosted at their facility to actually utilize the free tokens for something. Great idea, right, or so we thought and wanted to try it out a couple of months ago, so around the end of November last year we have purchased the following ASIC miners: Antminer S9 13.5 TH/s – PSU Included Batch 6 January and Antminer L3+ – PSU Included Batch 6 December. With these descriptions one would expect that the L3+ would go online in December or January latest and the S9 in January or early February. Guess what, it is already mid March and our miners purchased and paid for are still not online in Giga Watt’s facility.

We were pertinently waiting and waiting for something to happen, but our patience ran out completely at the beginning of February and the reply we got from Giga Watt was that our miners “should be deployed in February”. Well, they were not deployed in February and at the end of the month we were pretty pissed off already, so asking what is going on we got a reply that “Batch 6 hardware is expected to start the deployment process in March”. It is already mid March and we are still waiting for our miners to be deployed, even though earlier this month Giga Watt has released more tokens, meaning that they have additional power capacity already.

There are two more weeks by the end of the month although we do not have high hopes that we are going to see our miners getting deployed in that time frame, but even if we do see them we are clearly already very disappointed and not only will not recommend Giga Watt’s services, but will warn people not to rely on them at all. We are really disappointed from Giga Watt not delivering on time and on their promises and disappointed customers do not get compensation or refunds, so just stay away from them and save the trouble. We do plan to sell the tokens we own and move on, apart maybe from the ones needed by our miners if we ever see them getting deployed this month, or maybe the next one or who knows when.



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9 Responses to You May Want to Stay Away From Giga Watt’s Services

Dark Skywalker

March 16th, 2018 at 17:14

The Giga Watt ICO was as scammy as they come. The financial interest of the company were always opposed to that of its ICO customers. The white paper promised customers would get tokens to use the facilities and that the only way to rent space on the facility was to buy tokens from somebody else. However the price at which these tokens were sold was determined by Giga Watt themselves. Quote from the whitepaper:

“Token holders who are not personally interested in mining or have spare tokens can rent them out via the Partner’s rental module on Giga Watt’s web-site, choosing one of the rental fees set by Giga Watt. Token rental fees are the same as the Giga Watt’s facility rental fees, which are 4.20, 4.95, 5.7 and 6.45 US cents/kW/h, depending on the number of miners hosted (see Section “Giga Watt’s pricing”). It translates into daily rental income of ¢0.1-0.15 per token (¢37-57 per year).”

Provided that Giga Watt was supposed to make profits from services rendered on-site (local support & maintenance of faulty rigs, installation of new rigs), they have every motive to keep their facilities loaded at 100% capacity. If this means reduced rental space prices, nothing prevents Giga Watt from slashing them.

Also, potential value of the Giga Watt tokens was based on their scarcity. Yet, nothing prevents Giga Watt from expanding the facilities and funding this expansions with money from tokens sold to folks naive enough to participate.

All of the above being said, I am not surprised at all Giga Watt failed to deliver any service. They seem fraudsters by nature. A recent article in Politico Magazine mentions their venture in Wenatchee, Washington and as you can see from the quotes by David Carlson (Giga Watt Founder & CEO) and the photos, they are far from being anywhere near finished.

https://www.politico.com/magazine/story/2018/03/09/bitcoin-mining-energy-prices-smalltown-feature-217230

So, yeah… They wasted your money spent on the Antminers and you’re not going to get your rigs up by the end of the month. If you are in a position to request a refund, you should do that instead, in order to cut your losses.

some really black guy

March 16th, 2018 at 22:35

talk about frustration

some really black guy

March 16th, 2018 at 22:35

to me these guys are like scrypt.cc from way back when.

malandante

March 17th, 2018 at 03:56

They are mining for themselves with your machine and will give it to you once the difficulty growth makes it useless.

bathr

March 17th, 2018 at 13:12

I think it was pretty obvious that they’re running a shady business when they tied their business to their tokens – which you must buy to do business with them.

“Giga Watt has released more tokens, meaning that they have additional power capacity already.”

No, it means there’s a scam shitcoin they can create more out of which means it’s not following the basic fundamentals of crypto as it’s not trustless. It’s worse than a premined coin as they can keep increasing the premine. Not following the basics means it’s useless and shouldn’t even be created as crypto – as there are zero benefit to it, other than it makes it easier to scam people. It’s just disingenuous and giving a bad name to legit coins.

Andrey

March 17th, 2018 at 15:53

Sorry for delays, folks.
First was the hurricane, then bad weather, now PUD is unable to connect the new PODs (lack of cables, I think)
But your miners are safe, running well.
You’ll see the results in your dashboard soonnnnn.
It will not ROI, but the most important (the PODs and our profit) was done.
Thank you

Andres Fontiveros

March 18th, 2018 at 18:26

The company will be renamed to GigaScam soon.
You’ll loose your money there.

SarahD

March 19th, 2018 at 12:27

Watch out for them, a friend of mine got tricked and lost his money with them.

Adam

March 19th, 2018 at 15:39

I purchased 2 Antminer L3+’s from them when they first started selling them, after delays and delays they gave everyone in that batch the option to a) wait, b) sell your hardware or c) have your hardware sent to you. I went for option c and they sent the L3+’s to me in England at their own expense of just over £600.

I wouldn’t say it’s a scam, they just never thought it through! It would have been better if they built all the pods prior to the token sale but I understand they needed the funds from the token sale to pay for the pods, a catch 22 situation. Hopefully they’ll learn their lessons for next time, though I wouldn’t do business with them again!

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