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OKX has announced a complete shutdown of its Bitcoin mining pool products and related services, effective Feb. 26, 2024. This decision comes amid a tumultuous time for Bitcoin miners, as profitability wanes due to a dramatic decline in Bitcoin's price, recently dipping below the $40,000 mark.
The cryptocurrency exchange detailed its plans for winding down these services in a notice to its users, citing "business adjustments" as the primary driver for this decision. Starting from Jan. 26, 2024, the registration of new users for mining services was halted, while existing users have been allowed to operate until Feb. 25.
This strategic pivot away from mining operations by OKX could be indicative of broader issues facing the Bitcoin mining industry. The profitability of Bitcoin mining has plummeted, making it increasingly challenging for miners to sustain operations, especially those with higher overhead costs.
The decline in Bitcoin's value has exacerbated this issue, as the reward for mining no longer justifies the expense in many cases. The interruption of mining activities by major players like OKX can lead to a decrease in the network's difficulty, as the algorithm adjusts to the reduced hashing power. This adjustment could, in turn, make mining slightly more accessible for smaller miners, albeit temporarily.
OKX's transition away from mining pools follows a recent incident where the platform's native exchange token experienced a drop of more than 50% in value within a three-minute window. This drop was the result of a series of liquidations triggered by abnormal price fluctuations.
Following the debacle, OKB managed a significant recovery, bouncing back to $45.64 from a low of $25.17, with a staggering 2,100% increase in 24-hour trading volume, climbing to $79 million.