KuCoin is set to suspend its BTC and LTC mining pools on August 15th.
KuCoin, a significant player in the cryptocurrency world, has decided to suspend its Bitcoin (BTC) and Litecoin (LTC) mining pools.
According to the announcement shared on August 2nd, effective at 4:00 PM UTC on August 15th, 2023, the suspension will last until further notice.
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The decision reportedly aligns with "KuCoin’s evolving business strategy." However, the company did not provide a detailed explanation of why this action was necessary. On top of that, it is unclear whether this decision has anything to do with Litecoin's halving.
The mining pools at KuCoin boast hash rates of 9.08 exahashes per second (EH/s) for Bitcoin and 3.90 terrahashes per second (TH/s) for Litecoin. When comparing this to the overall hash rates of the Bitcoin and Litecoin networks, which stand at 349.19 EH/s and 792.16 TH/s, respectively, it becomes evident that KuCoin's contribution to mining is considerable.
To assist miners during the suspension, KuCoin issued the following advice:
To ensure uninterrupted earnings during our temporary suspension, users who are involved in cryptocurrency mining, we recommend transitioning your BTC and LTC miners to alternative mining pools before 16:00:00 on August 15, 2023 (UTC).
Additionally, the exchange has urged users to back up and preserve their mining records and related data before August 27th.
The suspension of mining pools raises questions in the context of other changes occurring within KuCoin. Recently, the company has implemented mandatory Know Your Customer (KYC) requirements for its users, stating that existing customers will not be able to deposit unless they complete KYC.
On top of that, rumors started spreading that KuCoin was preparing to lay off 30% of its workforce. The crypto exchange vehemently denied this, with CEO Johnny Lyu reassuring:
First things first, KuCoin is operating smoothly. Our recent H1 2023 report shows strong growth in users and new listings, and our talented team is expanding steadily.
KuCoin's decision to suspend Bitcoin and Litecoin mining pools is a significant move reflecting broader shifts within the crypto exchange's operations and possibly the industry as a whole. While the reasons behind this decision remain partially obscured, it seems clear that KuCoin is actively reshaping its business model and strategies.
