Giga Watt Shutting Down and Files for Bankruptcy, Leaving Clients with Worthless Tokens
Giga Watt, a mining services company is finally shutting down after filing for bankruptcy in November 2018. The company has only operated for slightly over one year after a successful launch in September 2017. The closure comes as a rude shock for clients who are now counting losses after mining operations were stalled.
Two days before Giga Watt formally announced Bankruptcy, customers were experiencing problems with miners already shutting off. Upon inquiries, one of the customer care representatives assured clients that all was well stating that,
“We still have power in Moses Lake”.
Unfortunately, documents later surfaced confirming the bankruptcy declaration. Company representatives only state that the shutdown was fueled by nonpayment. The message read as follows;
“Shut down due to non-payments. Revenue from hosting less than expenses”
A CCN reporter attempted to acquire more information from the company’s representative but was referred to PR and informed that no more information could be released on the advice of an attorney. The shutdown will affect clients and creditors that heavily invested in the company and who cannot take legal action during the stay to recover losses.
The company’s token, WTT, represents one watt of mining capacity and one watt of electrical power, inclusive of the maintenance, space, and hardware services provided by Giga Watt. The company website advertises a 5-year record of establishing successful mining facilities and one is only left wondering why the venture collapsed within a year of operations.
WTT received a 7.0 rating during the ICO from Hacked.com. The prices went as high as $4.20 upon launching, given that it was expected that it would perform well. Unfortunately, WTT being a utility token was pegged to the success of Giga Watt itself, and the failure of the company has rendered the token worthless.
Understanding Giga Watt
Giga Watt established itself as an inexpensive alternative for Bitcoin miners of all scales- large, medium, and small. The company claimed to have found the most affordable electricity in the world and could provide affordable mining solutions to token holders. Its model allowed clients to own mining equipment and paid for maintenance through their earnings. Giga Watt customers could send their own miners or send their own Bitcoin or Ethereum miners to be hosted. Clients could also pay their miners through Bitcoins, USD, or ether. The payments were deducted from daily returns made from mining.
The company offered charges as low as 2.8 cents per kW/h of electricity while still providing maintenance services. Giga Watt’s token was backed by real infrastructure making it a unique asset-based token. As such, the token and services provided were highly alluring to the public. The company designed a “Giga pod” also known as a “mining pod”. The facilities are said to house more than 30 megawatts of power and are effective in cooling through short air flow distances.
Giga Watt claimed that the facilities could support any type of mining equipment and are affordable to construct while taking up only two weeks to be established. The tokenization of the mining infrastructure was intended to grow the company and spread mining infrastructure to the rest of the world.