Bear Market of Crypto Takes Down Another Mining Service in Coinhive, Plans for March Shutdown
The bear market has been incredibly difficult for the price of nearly every cryptocurrency, but exchanges and mining companies are seeing the damage impact their own brands as well.
Several companies have had to lay off a considerable number of staff members, while others have had to shut down operations all together. Unfortunately for Coinhive, their situation is the latter, according to reports from The Block and other publications.
The crypto mining service is no longer viable from an economic standpoint, and the team ultimately announced their departure from the industry in a blog post from their official website. The annoucement begins,
“Some of you might have anticipated this, some of you will be surprised. The decision has been made. We will discontinue our service on March 8, 2019. It has been a blast working on this project over the past 18 months, but to be completely honest, it isn’t economically viable anymore.”
As the blog goes on, Coinhive explains that a massive 50% drop in the hash rate of Monero was essentially the final nail in the coffin. Between that and the bear market tearing down Monero’s value by over 85%, the company ultimately had to choose to discontinue their company.
Even though the shutdown is soon, miners and other users still can perform operations until March 8th of this year. After March 8th, no other mining activity can be performed, but the dashboards will remain available until April 30th, ensuring that the loyal users are able to properly cash out their earnings.
The Block describes Coinhive’s work as “an alternative to banner ads,” since users were able to integrate the software as a way to passively mine Monero. However, hackers would end up choosing the software as a way to hack major websites when they figured out how to use Coinhive’s code.
Reports from November 2017 show that Coinhive was once the sixth most-used malware by hackers and other cybercriminals.