Crypto

Poolin reward tokens collapse in response to massive Bitcoin mining exodus in China

Following the suppression of bitcoin mining in China, Poolin has suspended rewards for its token hashrate contracts.

According to the Poolin blog post, wBTC and wETH rewards have been suspended for “less than 60 days.”

Poolin suspends pBTC35A and pETH18C rewards

For Poolin, pBTC35A and pETH18C tokenized hashrate contracts, all wBTC and wETH rewards are suspended for less than 60 days.

The reason for this move is China’s ongoing crackdown on mining farms, which has forced miners from all over the country to migrate elsewhere.

The 60 day period is the migration time required to move mining farms out of China.

As a result of the suspension of the payment of remuneration, the holders are canceling contracts in hordes.

Related reading | Bitcoin Hash Speed ​​Doomed to Death Spiral Post: Fight Against Miners in China

This is how the price and volume graph of the pETH token looks now:

pETH price rapidly goes down | Source: Compass Mining Memo

The chart shows that the pETH price corrected quickly after the announcement.

Likewise for pBTC, the chart below shows the trend of its price and volume:

pBTC plummets following rewards suspension | Source: Compass Mining Memo

Two other takeaways from the charts are that pETH first hit $ 2 million in revenue in one day, but pBTC only hit a monthly high.

Another high volume of pBTC sales occurred in April and May. The first was a coal mine flood incident in Xinjiang that cut power to the bitcoin miners, and the second was caused by a 21% difficulty adjustment.

The Poolin team plans to pack and move their mining rigs elsewhere within 60 days, after which the rewards should resume as usual.

Related reading | Institutional Bitcoin Selling Leaves Retail With Bloody Consequences

It should be noted that although wBTC and wETH rewards are suspended, Poolin still offers Mars Token rewards.

Mars is the platform’s own governance token, which holders can usually vote on decisions related to the platform.

However, no Mars owner could vote for the decision to remove the wBTC and WETH awards. Poolin took the initiative on its own.

Bitcoin price

Right now, the bitcoin price is around $ 34,000, up 2% last week but down 7% over the past 30 days.

The latest crackdown on mining in China also caused the latest BTC crash. As BTC miners were also forced to close their farms and migrate to other locations.

Here is a graph showing the dynamics of its price:

Bitcoin Price Table

BTC seems to have stagnated around this point | Source: BTCUSD on TradingView

It is difficult to say where the price will go next. It is possible that BTC will enter a bear market because the wrong signal is never triggered.

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