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2nd largest Ethereum mining pool in the world shuts down activities under pressure in China

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The second largest Ethereum mining pool (ETH) in the world, the Spark Pool, announced this Monday (27) that it will stop all its services from 30 September.

The announcement comes just days after the pool dropped out of serving Chinese miners in response to the Asian country’s new wave of crackdowns against the cryptocurrency industry. Last Friday (24), China released new plans to combat mining and declared illegal any activity related to trading bitcoin and other cryptocurrencies.

At the time, Spark Pool justified the end of its activities in the Chinese region as an “effort to fully comply with the latest regulatory industry policies”.

However, this Monday’s decision signaled that the pool would not be able to survive only with miners outside of China, leading the company to close all its activities.

A notice from the official Spark Pool website states that “a complete shutdown of all services and operations for existing users, at home (China) or abroad, has been planned for September 30, 2021 under the premise of ensuring the safety of users. assets of our users”.

The company asks the miners that are part of the pool to plan for the definitive shutdown of operations. The Spark Pool team concluded by thanking the miners for their understanding. “We are extremely grateful to all our users for their long-term support of Spark Pool,” the note says.

Problems for Ethereum?

With more than five years of operation in the market, Spark Pool was until then one of the most important Ethereum pools, responsible for processing 20% ​​of all blocks in the network, according to Etherscan.

The percentage is slightly lower than Ethermine, the first pool, mining more than 21% of all blocks on the Ethereum network in the last seven days.

Because Spark Pool is based in Zhejiang, a province in eastern China, the company is likely to be directly impacted by the country’s new wave of crackdowns on crypto market participants.

Last week, China’s state planning body, the NDRC, issued a warning stepping up the fight against mining in the region that began in May.

The new order forced electricity providers to stop serving miners through hotlines. In addition, he suggested that the cost of energy charged to citizens who mine cryptocurrencies should increase to US$0.05 per kilowatt-hour.

The NDRC advised local authorities to increase the search for illegal mining farms and crack down on activities in their territories as a way of phasing out the industry.

The measure is already having an effect in the Asian country. In Inner Mongolia, local authorities seized more than 10,000 mining machines in a single operation. According to local media, the farm was located in a technology park operated by the government itself.

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