Thursday, May 19, 2022

Poolin Temporarily Halts BTC and ETH Hashrate Tokens’ Payout

The crypto users, who have staked their hash rate tokens on Mars protocol of Poolin for BTC and ETH, would not receive any payouts for a time being, announces China’s one of the major crypto mining pools.

On June 24, Poolin released a blog post specifying that due to the recent crackdown on crypto mining activities by the Chinese Government, the crypto mining pool shut the operation of its proprietary bitcoin miners.

The proprietary miners work for Poolin as underlying assets to support its recently issued pBTC35A and pETH18C hashrate tokens.

As the year 2021 started, Poolin issued two ERC-20 tokens. The users are allowed to stake these ERC-20 tokens to earn wBTC and ether. 

“After Sichuan policy’s shoe dropped, we realize this time’s unexpected shutting down would eventually make unbearable economic loss on whole project which would likely leads to operational hardness. In this case, team decides to pause the wBTC/ETH output for all pBTC35A and pETH18C for less than 60 days which corresponding to the estimated schedule of miners migration,” the firm said.

Poolin, in its blog post, has mentioned that in the past 30 days, the company’s Mars team held a meeting with a lot of mining farms, it even inked a long-term deal with some of them under top-tier names. However, recently, the machines backing the Mars project have been relocated to new facilities.

The price of pBTC35A and pETH18C hashrate tokens, issued by the crypto mining pool, significantly plummeted from their initial sales price and all-time-highs.

Initially, pBTC35A has an underlying hashrate of 1TH/s and the Poolin sold token’s each unit for $100. However, presently the price of the token has fallen below $50 on Uniswap, which means the value of pBTC35A came down nearly 60 percent from its all-time-high of above $120. 

The price of pETH18C has also come down and it lost over 60 percent of the value. It has been three months since Poolin issued pETH18C hashrate token, initially, its price was $30 but today, it has slid below $10. 

Due to China’s crackdown on the crypto mining-related activities in the country, many companies involved in the same suffered a lot, and Poolin is one of them. The company’s suspension reflects that crackdown has a severe impact on the mining activities in the country. 

As per the report, almost 50 percent of the Bitcoin network’s total hashrate has gone offline since Xinjiang and Sichuan handed down the shutdown order for mining farms.

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