OKX to End Crypto Mining Pool-Related Services Over Realignment

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

January 25, 2024

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Centralized crypto exchange OKX said on Friday 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. Meanwhile, 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.

OKX announced that it will shut down Bitcoin mining pool products and related services in the near future based on business adjustments, and will close all mining pool products and related services on February 26, 2024. https://t.co/hhJivS7hQN

— Wu Blockchain (@WuBlockchain) January 26, 2024

A crypto mining pool unites miners to mine blocks together and share rewards based on their contributions.

Typically, individuals or entities are designated to oversee and manage the pool’s operational aspects.

OKX did not specify the reason behind the discontinuation.

The exchange did not return Cryptonews’ request for comment by press time.

Ordinarily, an exchange’s decision to discontinue a mining pool hinges on financial, regulatory, operational, and strategic factors.

A recent report by Cantor Fitzgerald indicated that Bitcoin mining is becoming less lucrative.

Publicly traded mining companies could encounter profitability difficulties after the upcoming Bitcoin halving, it found.

OKX Mining Pool Discontinuation Follows OKB’s 50% Flash Crash

OKX’s announcement comes just a day after OKB, the ecosystem’s utility token, lost over 50% in value within 15 minutes on Jan. 23. The event resulted in a $6.5b loss in diluted market capitalization.

OKB tumbled from $52.02 to $25.10 on OKX before a quick rebound.

Today, OKB experienced unexpected volatility. The market has quickly stabilized, and we're actively developing a compensation plan, set to be finalized within 72 hours.

We apologize for any inconvenience caused and are committed to enhancing our risk management protocols.… pic.twitter.com/GxJ2M0dOS3

— OKX (@okx) January 23, 2024

The token’s price has since recovered and last traded at $52.81, TradingView data showed.

OKX attributed the crash to a cascade of liquidations triggered by large leveraged positions as OKB hit $48.36, which, in turn, led to a major market selloff.

The exchange said it would reimburse users for losses due to forced OKB selling during liquidation, including price differences, penalties, and transaction fees.

OKB’s flash crash coincided with heightened crypto market volatility, largely influenced by Grayscale Bitcoin Trust selling BTC to meet high redemption requests.

The company recently decided to delist eight privacy-focused coins. These included Monero (XMR), Cash (ZEC), and Dash (DASH).