Coinhive Says it Is no Longer “Economically Viable” and Shuts Down
The crypto winter has claimed yet another firm as Coinhive announced on February 26, 2019, that they would be discontinuing their services from March 8, 2019.
Saying Goodbye
Perhaps the most apparent after-effect of the crypto crash of 2018 was the near-immediate decline in the mining sector. As the price of bitcoin and other cryptos fell hard, giants of the mining business like GigaWatt were forced to close shop.
While there is a little more stability within the market, mining is still taking a hit. Coinhive is just the latest to fall victim to this as the firm formally announced that they would be closing operations. In their announcement, they made it clear that from March 8, 2019, their service will be discontinued due to not being economically viable anymore.
https://twitter.com/davidgerard/status/1100878778589462528
Sinking Ships
The firm explained that the hash rate dropped 50 percent after the last Monero hard fork took place which affected their bottom line. On top of this, the crash of 2018 drove the value of XRM down by 85 percent.
Once the next hard fork for Monero was announced for March 9, 2019, the firm realized that they would not be able to carry. However, for customers who still have funds with the company, some level of withdrawals will still be possible after that date.
“Your dashboards will still be accessible until April 30, 2019, so you will be able to initiate your payouts if your balance is above the minimum payout threshold,” the post read.
Up until now, Coinhive has functioned as a JavaScript-based digital currency mining service. It works by making use of the computing power of a browser once installed on a user’s computer system.
Digging for Gold
While every aspect of the blockchain and crypto community was walloped by the market crash, the mining industry was affected on all counts.
With the crash, the mining of currency has become unprofitable and this, the demand for mining services has practically disappeared overnight with Coinhive being the latest firm to close down.
