New Financial Channel Report Details Why 70% of South Korean Crypto Miners Shut Down Operations in 2018
A report released by CCTV—2, the Chinese owned Financial Channel television station indicates that the bear market may have had a significant toll on local miners than initially anticipated. The state-owned broadcaster has just released a report which seeks to document the effects of the 2018 bear market on the local crypto miners.
The report has documented the challenges that are being faced by the cryptocurrency miners. Findings from the report indicate that things were not made any easier by the fact that the cryptocurrency premiums in the country dropped by up to 97 percent.
This is a scenario that played a significant role in driving many of the miners out of business.
Close To 80% Of Local Crypto Miners Projected To Have Terminated Mining
The Financial Channel jumps into discussions about how the mining industry came to be in the country. It starts by looking at the operations of a local resident who at its height had a total of 1000 mining rigs. The rigs were acquired in January last year for use in generating the prices of Ether. This was at a time when the cryptocurrency prices were setting new records across the globe.
According to the financial statement, it is estimated that the total rate of mining one ETH at the time stood at about 214,000 KRW (Korean Won) or approximately one hundred and ninety dollars. It goes on to state that this was at the beginning of the year before the prices surged to record an all new-high of 2.35 million Korean Won for every single ETH.
Even though all the businesses that were operational at the time recorded exorbitant profits from the sale of alt-coins, and ETH, the rig operator states that close to 4 out of every 5 mining businesses have closed down from that time. The operator goes on to state that to the best of his knowledge, between seventy and eighty percent of the miners have shut down their mining operations.
He goes on to add that there is a real possibility that some of them have even filed or declared bankruptcy. This only goes on to show how dire the situation is for the South Korean miners who had started to earn a living from their operations.
Korean Total Global Share Of The Cryptocurrency Market Drops By Close To 50 Percent
The Financial Channel goes on to add that all these issues facing the local crypto market were further compounded by the intense collapse of the cryptocurrency prices. The slump so the crypto premiums fall from a high of forty percent last year in January to a low of 1 percent at the start of 2019.
The report from the state broadcaster goes on to note that the Bank of Korea has released a report which states that KRW pairings currently make up for a total of 5.8 percent of the overall global trade on crypto. Compared to a similar time last year, this means that the pairings have recorded a drop of close to fifty percent in terms of volume.