OKX did not elaborate on the reason for this decision but simply said that it was due to business adjustments.
When it comes to the crypto industry, mining is undoubtedly one of the most important activities in existence. It is the way that new tokens are brought into the world and has also proven to be a viable source of income for many crypto lovers. This has ushered in the use of mining software and participation in mining pools. Now the industry is about to lose one of its prominent mining options as the top exchange OKX has announced that it will be suspending its mining pools. This comes just weeks after it delisted several tokens from its platform, including Monero.
An End to OKX Mining
The official announcement was made on January 26, 2024, and spelt out the steps through which these services would be discontinued. On the very same day, OKX will be disabling new user registrations while existing users can continue to access mining pool services until February 25, 2024. By February 26, all mining pool-related services will be fully discontinued.
OKX did not elaborate on the reason for this decision but simply said that it was due to business adjustments. It is worth noting that in late 2023, crypto mining as a whole saw a decline. The drop in the value of Bitcoin meant that it was not as profitable for miners to continue their activities.
Another thing to consider is the fact that the next Bitcoin halving is only a few months away. The halving is the pre-scheduled event that cuts the block rewards for the Bitcoin network in half. While this often leads to a spike in the value of Bitcoin, it means that miners get fewer rewards for their efforts. And all these factors mean that there is less incentive to sign up for mining pools like OKX’s.
It is also interesting that this announcement is coming from OKX given that the company has seemingly been rebranding in the last few years. In 2022, for example, it changed its name from OKEx to OKX. In its official announcement, it said that it was becoming more than just an exchange and as the crypto industry was evolving, it would as well. And just this month, it delisted several tokens without giving much explanation as to why.
While this news will be disappointing for those who have relied on OKX’s mining pools, it does speak to the shifting state of the crypto industry. On one hand, there is palpable excitement about the spot Bitcoin ETFs and the possible ways they could influence the Bitcoin price. At the same time, it is left to be seen whether this will have a positive impact on the mining sector and if other mining pool operators will follow suit.