OKX to Close Mining Pool Operations Amid ‘Business Adjustments’
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Crypto exchange has OKX announced As of January 26, the mining pool will end its services, citing a “business adjustment” behind the move. The suspension of operations will stop new user registrations effective today and will disable services for existing users on February 25.
The company's mining pool already supports several cryptocurrencies based on Proof-of-Work (PoW) consensus algorithms such as Bitcoin (BTC via SHA256), Litecoin (LTC via Scrypt) and Ethereum Classic (ETC via Etchash). However, many supported assets have been removed over the years, leaving few active miners on the platform.
The shutdown comes after last week's severe flash crash involving OKX's native OKB token, which plunged its price by 48% before quickly recovering. In the post-event report, the exchange He promised Flexibility to restore affected users and facilitate risk control methods. This event saw a market capitalization of nearly $6.5 billion before recovering.
OKX said of last week's flash crash: “We will also improve spot gradient standards, committed credit risk control rules, mitigation mechanisms, etc. to prevent similar problems from occurring.”
The move represents a general decline in opportunities for proof-of-work versus proof-of-stake consensus models in the larger crypto industry. While the recent integration update moved Ethereum to proof-of-stake, Bitcoin is now the largest proof-of-work network.
Closing the mine in 2010 It marks a significant change for OKX, which has built its early reputation serving crypto miners in China since its launch in 2017. It will ban crypto trading and mining from September 2021. The company has since expanded into business lines such as payments, DeFi and NFTs, making mining services less central to its global growth strategy.
Other major exchanges such as Binance and KuCoin continue to operate mining pools, seeing it as an additional revenue stream from their existing user base. With deep liquidity and custodial services, exchanges can play an important role in attracting remaining proof-of-work miners as broader industry trends shift toward alternative consensus models.
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