OKX pulls plug on mining pool amid declining user and hashrate numbers

Crypto exchange OKX will discontinue its mining pool services due to “business adjustments” reasons, according to a Jan. 26 statement.

The platform said it had halted new customer registrations, effective immediately. Existing users will retain access to the platform until Feb. 25, after which all mining pool-related services will be discontinued by Feb. 26.

“Due to business adjustments, OKX will discontinue Mining Pool and related services shortly. We apologize for any inconvenience that may cause you,” OKX stated.

OKX has yet to respond to CryptoSlate’s request for comments as of press time.

Mining pools enhance block-solving efficiency by consolidating computational power from multiple miners. This collaboration enables miners to earn cryptocurrencies by collectively tackling the computational requirements of cryptocurrency mining, ensuring a more stable income.

OKX’s decision marks the end of a service it initiated in 2018. The firm’s pool supported several Proof-of-Work (PoW) assets, including Bitcoin (BTC), Litecoin (LTC), and Ethereum Classic (ETC), and enjoyed some early success.

However, data from Mining Pool shows that its use and adoption have suffered in recent years, as it now ranks 36th among Bitcoin-focused mining pools.

Notably, its website also shows that it has just 17 active miners for all its supported assets, with its BTC pool having a total hashrate of 514 TH/s for Bitcoin, 1.49 MH/s for LTC, and 363.87 MH/s for ETC.

Miners prepare for BTC halving.

OKX’s decision comes at a crucial time: Most miners are preparing for the Bitcoin halving, which is anticipated to occur by April.

The Bitcoin halving is a pivotal event characterized by a 50% reduction in mining rewards to mitigate the influx of new coins into the network. This occurs at precise intervals—specifically, every four years or after completing 210,000 blocks.

Several BTC miners, including Riot Platforms, Phoenix Group, and others, have purchased substantial amounts of mining hardware in preparation for this significant event.



Source

Recommended For You

About the Author: wp4crypto

Leave a Reply

Your email address will not be published. Required fields are marked *