Japanese e-commerce conglomerate DMM.com Ltd. can shut down its crypto mining business, citing deteriorating profitability because the main cause. Toyo Keizai reported the shutdown on Dec. 30.
The decision was reportedly taken in Sep 2018, and initial steps to dismantle mining operations — together with selling the company’s mining hardware — can reportedly extend over the first half of 2019.
DMM.com, that has over 27 million customers for its e-commerce business, initial declared its entry into the crypto mining business in Sep 2017, with a focus on mining major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). As of February this year, the corporate has operated a large-scale mining farm within the city of Kanazawa.
By April, DMM had even planned to open a showroom for its mining operations, desiring to open access for the public to see 1,000 mining machines on a 500 square meter website, Toyo Keizai reports. Nevertheless the choice was reportedly reversed in early June because of security issues, particularly over the potential threat of hardware theft when foiled attempts at the Kanazawa farm.
According to Toyo Keizai, DMM is additionally reconsidering its launch of a crypto mercantilism app dubbed “Cointap,” that had been slated for unleash on Dec. 25 2018. the corporate reportedly considers that each the pessimistic crypto market and also the high-profile hack of Japanese crypto exchange Coincheck in Jan 2018 have created attracting new traders to the arena tougher.
There has been no indication that DMM can stop to work its regulated cryptocurrency exchange that has been live since Jan 2018.
As reported, Japanese web giant GMO internet group has recently declared it'll not develop, manufacture and sell Bitcoin miners, once reporting high losses in q4 2018.
Meanwhile, reports of mass selloffs of mining hardware in China surfaced in November, and mining industry stalwarts such as Bitmain are reportedly set to lay off workers due to the price rout of the crypto markets last year.
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