DPRO digital rating: Cow computing power ETH

1. Introduction

As the source of virtual currency, mining is an important part of maintaining the stability of the POW cryptocurrency network and the basic value of the currency price. It is an indispensable part of the blockchain. In 2019, with the surge in BTC prices, the mining industry began to fully recover. Various products emerged in the market, including cloud computing power, mining machine leasing, and mining machine hosting. The models are also strange, and companies of all sizes are blooming everywhere. So behind this mining computing power market, how to distinguish the quality of a product and how to protect the safety of your funds, the author will analyze it for you.

Rating Results

Project Type: Cloud Mining Project

Comprehensive conclusion: Ethereum's unlimited issuance mechanism and relatively stable computing difficulty make the income of mining machines quite stable. With the popularity of DEFI, ETH applications have added a large amount of value and are rising sharply. Ethereum mining has become a better investment target.

II. Project Background

1. Project Introduction

Introduction: Cow Computing mainly simplifies the traditional digital currency mining industry chain through the Internet, making the industry chain flatter, details transparent, and processes Internet-based. Users no longer need to buy expensive equipment and waste time setting it up. We directly connect investors with mining farms, so that it only takes 24 hours for the mining machines in the mining farms to send digital currencies directly to the investor's wallet after mining. At the same time, Cow Computing opens the right to "one-click subscription of computing power" to every user, so that they can become a mining farm owner without leaving home.

Rating Range

2. Reasonableness of unit computing power cost

Taking Panda B7 as the mainstream model for cost judgment, the selling price is 9,600 yuan, the computing power is 230M, and the energy consumption is 1,150W.

The electricity price is calculated at 0.3 yuan/KWH. Each mining machine consumes 1.15*24*365*2*0.3=6044.4 yuan in electricity for two years, and the unit computing power cost per year is (9600+6044.4)/2/230=34 yuan.

The computing power product of Cow Computing Cloud is 1,000 yuan for 360 days, with a computing power of 15.7719M. The product directly deducts electricity and management fees every day, and the unit computing power cost per year is 63.40 yuan. There is a positive deviation value from the unit computing power cost, and the deviation value is about 87%, which is not a bubble.

The price of the RX580 8-card Niuhu Mining Machine is 15,000 yuan, with a computing power of 210M. The validity period is permanent, calculated as 2 years, and the mining machine electricity package is 3,821.65 yuan/year. The unit computing power cost per year is (15,000+3,821.65*2)/2/210=53.91 yuan. There is a positive deviation from the unit computing power cost, and there is no bubble in the product price.

3. Project Perception

As a cloud computing product that was launched not long ago in 2019, Niuhuo Power has a strong brand and strength. Both Wang Chong and Zhuang Siyuan can be regarded as early players in mining and have certain financial resources. In terms of security factors, Niuhuo Power can be regarded as very excellent and transparent. It is a domestic registered main company, with a formal business license, and a complete ICP filing. Moreover, a registered company with a capital of 60 million yuan has a paid-in capital of 11.5 million yuan. This situation is a very excellent enterprise in the current market. Since the emergence of the subscription system, there are really not many companies with paid-in capital.

The author had the opportunity to visit the operation center in Suzhou City to learn about the details of the company. The company very honestly admitted that for short-term products, the company still added a little leverage, but 100% of the one-year products would not have leverage. Such product design can be said to be completely based on the user's perspective, providing users who like short-term investment with a stable channel to mine BTC or ETH. Compared with general cloud computing companies, products designed in this way are obviously more scientific and convenient, and easier for users to accept.

The author agrees with the four levels of strength of cloud computing companies divided by CowHash:

The first type is a pure matching trading platform: this type of platform has no mining machines, no mining farms, and no self-built operation and maintenance team;

The second category is the machine-selling trading platform: it has mining machines but no mining farms or self-built operation and maintenance teams;

The third category is service-oriented trading platforms: they have mining machines but no mining farms, and they have their own operation and maintenance team.

The fourth category is the deep-rooted trading platform: it has mining machines, mining farms, and self-built operation and maintenance teams.

In fact, the third and fourth categories are not very different from the author's point of view, because they are all self-produced mining machines. As long as they are sold well, the mining machines can be purchased. And Cow Hash Power belongs to the highest level of the fourth category platform. Whether it is self-built mining farms, mining machines, or operation and maintenance teams, they can all be verified. And its customer service is also very different from that of general large platforms. It may be in the market promotion stage, so it is very enthusiastic. The author believes that in terms of cloud mining, Cow Hash Power is undoubtedly a leading good product on the market.

IV. Project Rating Analysis

1. Security dimension analysis Total score: 96.18 points

1.1 Company Information 25.00 points

①Company establishment time 0 points

Shanghai Qisuan Technology Co., Ltd. was established on August 20, 2019, less than a year ago.

②Company registered capital 5.00 points

The registered capital of Shanghai Qisuan Technology Co., Ltd. is RMB 60 million and the paid-in capital is RMB 11.5 million.

③Company staff size 5.00 points

The author had the honor to visit the operation center of Cow Computing Power in Suzhou. There are more than 30 employees in total, and the current number of insured persons is 0.

④ Community situation 5.00 points

There are WeChat communities, each group has its own customer service and is very active.

⑤ Honors of company legal person/leader: 5.00 points

The legal person of Shanghai Qisuan Technology Co., Ltd. is Zhuang Siyuan, and no relevant information has been disclosed. Other leaders of the company include Wang Chong and Jiang Jinghai: They have rich experience in the industry. Wang Chong himself is the executive president of the WBA Mining Promotion Association and was invited as a special guest to attend the summit held by Innosilicon Technology.

⑥Company Honor 5.00 points

Cow Computing Power Company has been awarded as one of the top ten most investment-oriented integrity demonstration platforms for blockchain technology innovation in China and is a member of the World Mining Development Alliance.

1.2 Mine information 71.18 points

① Number of mining machines: 1.33 According to promotional materials, there are more than 100,000 mining machines in the world, and there are 9 large self-built mines.

② Mining machine model 5.00 is the RX580 8-card mining machine assembled by the company itself.

③Power consumption ratio 9.85 points Cloud computing power 9.85 points

The APP shows that the mining machines of cloud computing products are all RX580 8-card mining machines, with a power consumption ratio of 0.0057KW/M. 9.75 points

Mining machine contract 9.85 points

RX580 8-card mining machine, power consumption ratio is 0.0057KW/M, and computing power is 210M.

④ Field visit 15.00 points Field visit can be provided.

⑤ Mining pool query 25.00+5.00=30.00 points

After communicating with the company, I provided the total computing power of the ETH mining pool account and provided screenshots, which totaled more than 1 million M. I also provided a real list of electricity bills paid.

⑥ Mining pool computing power 10.00 points

After communicating with the other party, the author found out that the total BTC quota is over 500P, which makes them the top members of the 100P hashrate club in China. The total hashrate of ETH exceeds 1 millionM.

2. Benefit dimension analysis 75.81 points

premise:

Because ETH prices fluctuate greatly, the total revenue will be related to the real-time buying and selling prices, which may be different from the calculation. On August 23, 2020, the price was 1ETH = 2,700 yuan, the computing difficulty on that day was 2.7P, and the revenue per M was 0.00008746 ETH. There is no upper limit on the market promotion revenue, which is not included in the revenue dimension. The decimals involved in the payback period are all rounded up to one day, and the corresponding profit period is all rounded down. The calculation does not involve handling fees.

Product Category: Cloud Computing

Cloud computing power - RX580 8 cards, priced at 1,000 yuan, valid for 360 days, computing power 15.7719M, free electricity bill.

Mining machine purchase

Cow Miner - RX580 8 cards, priced at 15,000 yuan, electricity price of 0.38 yuan/kWh, computing power of 210M, no hosting fee, permanent term.

2.1 Expenditure 28.06 points

①Electricity fee 7.49 cents

Cloud computing power contract 8.98 points

Cloud computing power is provided free of charge, and the score is calculated based on the unit computing power cost.

Mining machine purchase 6.00 points

The unit price of electricity for all mining machines is 0.38 yuan/kWh. 6.00 points

②Unit computing power cost 10.57 points

Cloud computing power contract

Cloud computing power - RX580 8 cards, priced at 1,000 yuan, computing power 15.7719M, unit computing power cost 63.40 yuan/M/year. 8.98 points

Purchase of mining machines (since they are permanently owned, the service life is 2 years)

Cow Miner - RX580 8 cards, priced at 15,000 yuan, annual electricity bill 3,821.65 yuan, unit computing power cost 53.91 yuan/M/year. 12.15 points

③ Custody fee 5.00 points

There is no hosting fee for ETH cloud computing power and mining machines.

④ Withdrawal fee 5.00 points

The withdrawal fee is 0.005ETH=13.5 yuan.

2.2 Income 47.75 points

① Investment time 4.00 points

The minimum period for cloud computing power is 360 days.

②Annualized net rate of return 25.00 points

Cloud computing power

Cloud computing power - RX580 8 cards, annualized net income is 60.25%. 25.00 points

Purchase of mining machines (since they are permanently owned, the service life is 2 years)

Cow Miner - RX580 8 cards, priced at 15,000 yuan, with an annualized net return of 74.15%. 25.00 points

③Stoppage compensation 5.00 points

We promise that the elevator will be online as soon as possible and there will be compensation for downtime.

④Extra income 10.00 points

There are 2 levels of referral rewards, and the reward percentage is linked to the total amount.

⑤ Waiting time for boarding: 3.75 points

Each contract is launched every half a month, which means the longest waiting time is 15 days. 5.00 points

The time varies depending on the order, and the delivery time is mid-month, which is 30 days at most. 2.50 points

3. Convenience Total score 81.50 points

3.1 Registration and Use 21.00 points

①Registration method: 6.00 points: Register with mobile phone number, invitation code is not required.

②Website application 15.00 points There is an official website and APP. The official website is http://www.hashcow.cn

3.2 Deposit 15.50 cents

①Deposit method 8.00 points supports USDT or BTC payment.

② The electricity bill is paid at 7.50 points and the contract will give you free electricity bill. Miners can purchase electricity bill packages.

3.3 Withdrawal 45.00 points

The minimum withdrawal threshold is 0.05ETH = 135 yuan.

Rating Criteria

Disclaimer: This report is only for project analysis and interpretation, and is only for readers to understand and learn, and is not used as a basis for investment reference. The final right of interpretation of this report belongs to DPRO Evaluation.