OKX to Discontinue Mining Pool and Related Services
Centralized crypto exchange OKX has announced that it will soon shut down its Mining Pool and related services due to business adjustments. New user registrations for the Mining Pool will no longer be accepted starting Jan. 26, while existing users can continue to use the service until Feb. 25. All services related to the mining pool will ultimately wind up on Feb. 26.
Reasons Behind the Discontinuation
OKX did not specify the reason behind the discontinuation of its mining pool and related services. Typically, an exchange’s decision to discontinue a mining pool hinges on financial, regulatory, operational, and strategic factors. However, the exchange did not respond to requests for comment regarding this matter.
OKX Mining Pool Discontinuation Follows OKB’s Flash Crash
The announcement from OKX comes just a day after OKB, the ecosystem’s utility token, experienced a flash crash, losing over 50% in value within 15 minutes on Jan. 23. The crash resulted in a $6.5 billion loss in diluted market capitalization. OKB tumbled from $52.02 to $25.10 on OKX before quickly rebounding.
Reimbursement for Losses
OKX attributed the flash crash to liquidations triggered by large leveraged positions as OKB hit $48.36, leading to a major market selloff. The exchange has stated that it will reimburse users for losses due to forced OKB selling during liquidation, including price differences, penalties, and transaction fees.
Hot Take: Impact on Crypto Market
The discontinuation of OKX’s mining pool and the flash crash of OKB highlight the volatile nature of the crypto market. It also raises questions about the profitability and stability of mining activities. With Bitcoin mining becoming less lucrative, it’s possible that more exchanges may choose to discontinue their mining pool services in the future. This could have implications for miners and the overall crypto market as well.
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