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HashFlare Shuts Down Bitcoin Mining Services

Hashflare, one of the largest cloud mining service provides is no longer supporting mining services. Announced on Friday in an email and on its Facebook page, Hashflare blames “the worst situation of cryptocurrency market”. It also terminates hardware on current SHA-256 mining contracts due to firm’s failure on generating revenue.

The official statement of Hashflare states as;

For over a month our users encountered a situation when the payouts were lower than the maintenance fees, resulting in zero accruals to the balance. As of 18.07.2018, the payouts were lower than maintenance for 28 consecutive days.

In contrast, users are also reporting that the company had a harsh operation over withdrawals and its other services. The move comes when Hashflare experiences unprofitable business while continuing offering BTC mining services. However, it also notes that they have also worked to lower its costs.

BTC mining continues being unprofitable

Though Hashflare has recently raised withdrawal fee to 0.05 BTC and 0.1ETH, shutting down its cloud mining service wasn’t a surprising move to those who were noticing the intensifying Bitcoin hashrate. In fact, the total hashrate has tripled since early 2018, affecting profitability.

Apparently, the firm is still in hope on a market, explaining that;

We expect that the cryptocurrency market situation will stabilize in the nearest future and we will be able to offer our users new advantageous solutions.

Well before the announcement, HashFlare on Thursday rolled “new control announcement on withdrawals” by putting strict limits on withdrawals for a customer who does not verify their identity”. It asks the user to “undergo the process of identity verification” that intended to ensure AML and KYC policies. This means that only “verified users can enjoy increased daily and monthly withdrawal limits”

What’s your opinion on HashFlare’s decision to discontinue Bitcoin mining services? Let us know on Twitter

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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