Bitcoin Hashrate Down 31 Percent, Bitmain Shuts Down Israeli Operations, Coinbase Plans to Add 30 More Assets
The bear market is not yet going anywhere. It continues to claim more heads as Bitmain, the largest manufacturer of Bitcoin mining chips, closes its operations in Israel. At the same time, the overall Bitcoin hashrate has fallen by 31 percent since November, according to BitMEX research. On a lighter note, Coinbase, the largest crypto exchange in the U.S. has revealed plans to add more than 30 cryptocurrencies to its listings.
According to a research by BitMEX, the bear market has had a severe effect on the crypto mining sector. The report highlights that the price of Bitcoin tanked around 45 percent since the start of November. According to CoinMarketCap, the price of Bitcoin started November at around $6,390 but has fallen to its new low levels of around $3,500.
The report further highlighted that Bitcoin had two major price declines. On Nov. 16th, Bitcoin’s price tanked 7.4 percent, the largest adjustment since January 2013. On Dec. 3rd, the price of the most popular cryptocurrency fell 15.1 percent, the biggest adjustment since October 2011. There is no clear-cut reason as to what caused the price drops, but there are suspicions miners dumped Bitcoin in a bid to finance the Bitcoin Cash hash war.
The bear market has had an adverse effect on the mining sector with the Bitcoin network losing 31 percent of its hashrate (equivalent to switching off 1.3 million Bitmain S9 machines) since the beginning of November.
Although the report highlighted that many miners are struggling, it pointed out the miners incur different costs and those with minimum overall expenses will remain afloat during the current bear storm. Between the start of November and the start of December, the daily revenue in Bitcoin mining has fallen from $13 million to $6 million.
Bitmain sings the blues
The bear market’s grip affects both big and small companies in the game. Bitmain, the largest manufacturer of cryptocurrency mining equipment has not been spared the brutality of the bear trend.
According to Globes Israel, the mining giant is closing Bitmaintech Israel, its Israeli-based development center with 23 employees and headed by Gadi Glikberg, a VP at Bitmain. The data center has been operational for two years and the closure will leave the staff unemployed.
Gligberg, who also oversees Bitmain’s sales and marketing informed the staff at Bitmaintech about the imminent closure,
“the crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”
Based in China, Bitmain is one of the largest companies in the industry with various subsidies that include Antpool mining pool and Hashnet, a cloud-based mining pool. The firm also operates development centers in Amsterdam and Hong Kong and had plans to expand into the U.S.
Bitmain initially had plans to file for an IPO at the Hong Kong Stock Exchange and it remains to be seen if it will go ahead with its plans as the crypto market looks set to complete the year on a bear run.
Coinbase to list 30 digital tokens on its platform
Coinbase, one of the largest cryptocurrency exchanges in North America, published a blog post stating that it is considering adding more than 30 digital assets to its platform. The exchange further added that it “will be working with local banks and regulators to add them in as many jurisdictions as possible.”
The list of digital assets considered for listing on Coinbase includes the highly anticipated Ripple’s XRP. Many people want to see XRP make its way on Coinbase – a respected cryptocurrency exchange.
Coinbase announced that it is following up on its plan to offer support for all assets that meet the exchange’s “standards and are fully compliant with local law.”
Coinbase wants to offer its customers “access to greater than 90% of all compliant digital assets by market cap.”
The exchange has promised to evaluate the prospective digital assets against its Digital Asset Framework to check if the assets’ security and compliance are in line with its mission.
The assets considered for listing include Cardano (ADA), Aeternity (AE), Aragon (ANT), Bread Wallet (BRD), Civic (CVC), Dai (DAI), district0x (DNT), EnjinCoin (ENJ), EOS (EOS), Golem Network (GNT), IOST (IOST), Kin (KIN), Kyber Network (KNC), ChainLink (LINK), Loom Network (LOOM), Loopring (LRC), Decentraland (MANA), Mainframe (MFT), Maker (MKR), NEO (NEO), OmiseGo (OMG), Po.et (POE), QuarkChain (QKC), Augur (REP), Request Network (REQ), Status (SNT), Storj (STORJ), Stellar (XLM), XRP (XRP), Tezos (XTZ), and Zilliqa (ZIL).
However, there is no guarantee that they will be listed on the exchange.
Binance launches sub-account feature to address institutional demand
The ongoing bear market has not dampened Binance’s spirit of innovation. The largest cryptocurrency exchange by volume launched the long-awaited Sub-account feature which addresses the need for institutions to set up a maximum of 200 trading accounts under one central balance of funds.
Addressing the Block in relation to the matter, Wei Zhou, the CEO at Binance said,
“We are seeing an influx of institutional accounts in the space and anticipate institutional demand to pick up substantially in the coming months. One of our key focuses is to provide a platform that services the needs of these clients as well as our retail users.”
According to Binance’s post, the new feature ‘is available to corporate users and individuals with VIP 3 tier (or higher) accounts only.’
Staying with exchanges and listing, Bithumb, one of South Korea’s largest cryptocurrency exchanges has launched a new voting system that leads to the listing (or not) of digital assets. Known as Pickthumb, the feature is set to increase transparency in the exchange’s listing process.
According to its website, the exchange says that,
“Pickthumb is a platform for screening excellent coins based on your fair evaluation … users can directly evaluate, validate and vote on cryptocurrency projects that will be listed on global cryptocurrency exchange Bithumb.”
The new feature is open to all registered users, allowing members to give their voice and have more influence on the coins picked for listing by the exchange. The platform wants to have a healthy ecosystem that has the trust of investors.
The feature has several rounds of voting consisting of a number of prospective coins. Each round will last two weeks during which users can vote or against a coin. The coins that receive downvotes will be disqualified from the listing process. The winner from the voting round is carried over to the exchange’s review committee.
The users who voted for the winning project have something to smile about as they can receive an airdrop of the winning coin.
Pickthumb has issued a warning against unfair voting, stating that it is watching the voting process every single day. Any user found engaging in vote manipulation may have their account completely suspended.