KuCoin, an exchange with over 20 million clients, will pause its Bitcoin and Litecoin mining pools on Aug. 16 as part of a shift towards its core business focus. Recent layoffs, rumored to have affected almost 30% of its workforce, prompted the move.
The KuCoin Bitcoin mining pool’s hash rate currently stands at 9.60 EH/s.
KuCoin changing tactics
In an Aug. 1 announcement, KuCoin said it will temporarily suspend its pool service from Aug. 15, 2023, at 16:00:00 (UTC) until further updates are released.
KuCoin Pool is being paused shy of its second anniversary. The ultimate goal of the service was to grow into one of the largest proof-of-work mining pools globally to enhance the security of various public chains.
Despite offering Bitcoin and Litecoin mining services, it was touted as one of the top performing pools.
Users will have secure access and total control over their assets during the interim phase. KuCoin’s other offerings will continue without interruption.
With this directive, Bitcoin and Litecoin miners have to explore alternative pools before the deadline. At the same time, all customers should back up and preserve essential records by Aug. 27, 2023 (UTC).
Tightening the rules
KuCoin pinned the decision on their evolving business strategy.
On July 25, a crypto reporter, Colin Wu, said KuCoin is downsizing like Binance.
KuCoin said the job cuts weren’t due to performance but were aimed at improving their main business. However, this could be a way for the exchange to navigate regulatory changes and overcome dicey market conditions to remain competitive.