Poolin stops payment of BTC and ETH hash rate tokens after China crackdown
Poolin, one of China’s leading crypto mining pools, has temporarily halted bitcoin and ether payments to users who have staked their hash rate tokens on Poolin’s Mars protocol.
Swimming pool said in a blog post On Friday, operations of its proprietary bitcoin miners who serve as underlying assets supporting its recently issued pBTC35A and pETH18C hash rate tokens were closed following recent orders issued by the Chinese governments in Xinjiang and Sichuan.
Poolin deployed the two ERC-20 tokens earlier this year which can be wagered to earn wBTC and Ether based on the compute hash rate that each unit of the token represents and which is mined on their respective networks. .
“After the fall of Sichuan politics, we realize that the unexpected closure of this time would result in unbearable economic loss on the entire project, which would likely lead to operational difficulty. In this case, the team decides to suspend the wBTC / ETH output for all pBTC35A and pETH18C for less than 60 days, which is the estimated timing of miner migration, ”the company said.
“In [the] In the past 30 days, the Mars team has visited numerous mining farms and signed long-term facility hosting contracts with some mining farms under prominent names, ”Poolin said in the post. blogger, adding that it is currently relocating the machines supporting the Mars project to new facilities with the expectation that the process will take 35 to 40 days.
Both pBTC35A and pETH18C prices have fallen significantly from their initial selling prices and historic highs.
Poolin initially sold pBTC35A for $ 100 per unit with an underlying hash rate of 1 TH / s. It has now fallen below $ 50 on Uniswap, down almost 60% from its all-time high of over $ 120.
The price of pETH18C also plunged more than 60%, slipping below $ 10 roughly three months after Poolin launched the token at $ 30.
The Poolin suspension is the latest event that crypto mining operations are severely affected by the Chinese crackdown.
Nearly 50% of the bitcoin network’s total hash rate has been offline since Xinjiang and Sichuan issued the order to shut down mining farms.
As a result, there has been an increase in the circulating supply of used bitcoin miners in the market as a result of the shutdown policy.