Poolin halted payments to “hashrate tokens” due to attack on miners in China

June 25, 2021

Poolin halted payments

Poolin, which controls 11.3 per cent of bitcoin's hashrate, announced that it is suspending payments to the first cryptocurrency and Ethereum for users who have blocked hashrate tokens in the Mars protocol.

The organisation took this step following orders from authorities in Xinjiang and Sichuan to halt cryptocurrency mining operations. Such actions affected Poolin's computing power, depriving it of the ability to receive the underlying assets for the hashrate tokens.

Released in January and March, pBTC35A and pETH18C can be leveraged in stacking to produce WBTC and Ethereum. Each ERC-20 token unit represents 1TH/s and 1MH/s hashrate in the respective network, respectively.

The payment cut-off period of a maximum of 60 days corresponds to the anticipated migration schedule of the miners.

"In the last 30 days, the Mars team has signed long-term colocation contracts with some of the industry's largest data centres. We are confident that we will solve the problem with our US partners," Pool explained in a blog post.

According to CoinGecko, the price of pBTC35A has fallen 26.4% in the last 24 hours, while pETH18C has fallen 30.2%. The tokens have fallen by 68.5% and 71.1% from their historical highs, respectively.

As a reminder, the crackdown on miners in China has led to an increase in the supply of used ASIC devices.

Foundry Vice President Kevin Zhang estimated a 70% loss in hash rate as a result of the Chinese authorities. The specialist predicted that the figure will increase to 90% by the end of June.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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