After four years of operation, Hong Kong-based cryptocurrency exchange BTCC is shutting down its mining pool business, BTCC Pool Limited, the company announced on their website on November 6, 2018.
Mining Company BTCC Pool Shut Down Indefinitely
A major crypto exchange based in Hong Kong has announced that it will be shutting down its mining pool business. BTCC crypto exchange, which launched its mining pool back in 2014, announced the closure via a blog post on their website, citing the reason for the closure as “business adjustments.”
According to the company’s blog post, all of BTCC’s mining servers will be shut down on November 15, with the company ceasing all operations indefinitely from November 30.
BTCC, one of the oldest exchanges in Hong Kong, has also asked its member miners to switch their hashing power away from the BTCC pool before November 15, 2018, as it will enable the company to release all the previously earned mining profits ‘in time.’
What Lead to BTCC Closing its Mining Pool?
BTCC’s mining pool was launched back in 2014, as one of the company’s several business verticals, such as a cryptocurrency wallet called Mobi and a USD/BTC exchange.
Previously known as BTC China, BTCC’s crypto exchange business was one of the longest-running and once among the top-three trading platforms in the country. However, after a country-wide ban on crypto trading was enforced in September 2017, the company had trouble staying afloat as it voluntarily closed all of its operations in China.
In January 2018, the exchange was acquired by a Hong Kong-based blockchain investment fund, but the company failed to provide any details about the acquisition or its plans for the future. Shortly after, in July 2018, the exchange relaunched with a plan to issue its tokens, introduce new trading pairs, and have zero trading fees in the first three months after the relaunch.
However, it seems that the company’s revamp did not go as well as initially planned, as, in June 2018, it provisionally agreed to sell 49 percent of its equity to a Hong Kong-based financial service firm called Value Convergence (VC) Holdings.
According to the MOU published by the two companies, the deal was expected to raise $17 million when finalized. Despite the highly publicized sale, it is currently unclear if the deal had ever reached that stage.
According to data from blockchain.info, during the time of the deal, in June 2018, BTCC’s pool accounted for 1.1 percent of bitcoin’s hashing power. However, data has shown that its current hashing power is not sufficient to register on the site.
And while it’s still unclear what the future hold for the BTCC, the company’s announcement said that they “believe the blockchain industry and crypto assets will continue to develop and improve.”