Last updated on May 18th, 2024 at 12:12 pm
Popular cryptocurrency exchange, OKX has announced that it will be shutting down its mining pool services effective immediately.
In a recent development, the Seychelles-based crypto exchange has issued a statement informing its users and the general public that it will discontinue its Mining Pool and related services.
According to the press releases issued on Friday, January 26, the crypto exchange giant cited “business adjustments” as the reason for this action.
“Due to business adjustments, OKX will discontinue Mining Pool and related services shortly. We apologize for any inconvenience that may cause you.”
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OKX releases shut down schedule
Furthermore, OKX released a commencement schedule. Per the update, it will discontinue new user registration immediately, stating that existing users will be given a grace of one month to continue using the service until it terminates on February 25, 2024.
The following day, February 26, 2024, all mining pool-related services will be shut down permanently. Before this decision, OKX ranked 36th out of the top 70 Bitcoin-focused mining pools, according to Mining Pools data, and its overall hash rate was a little over 496 TH/s.
OKX ends mining operation a few months before the Bitcoin halving event
The decision to stop operating the mining pool coincides with the fact that Bitcoin will experience its fourth halving in April of this year when 740,000 blocks are reached. The precise day of the halving is unknown, but miners will receive a reduction in block reward from 6.25 Bitcoins to 3.125 Bitcoins.
The decision made by OKX to shut down its mining operations is a clear indication of the issues facing the Bitcoin mining industry. Miners now find it difficult to maintain operations as a result of the significant reduction in their profitability.
Furthermore, the plummet in the value of Bitcoin has worsened the issue, making it difficult to reach the break-even point. It is worth knowing that OKX is moving away from mining pools after a recent event in which the value of the platform’s native exchange token, OKB dropped by over 50% in three minutes.
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Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.