Mining pool reward tokens plummeted in response to the outflow of China’s Bitcoin mining industry
After China cracked down on Bitcoin mining, Biyin suspended its rewards for tokenized computing power contracts.
According to the blog, wBTC and wETH rewards will be suspended until “less than 60 days” postal From Purin.
Biyin suspends rewards for pBTC35A and pETH18C
Biyin’s tokenized computing power contracts, pBTC35A and pETH18C, all of its wBTC and wETH rewards have been suspended for less than 60 days.
The reason behind this move is Chinese Continued suppression In mines, this forced miners from all over the country to move elsewhere.
The 60-day time frame is related to the migration time required to move the mine out of China.
Due to the suspension of reward payments, holders are withdrawing from the contract in droves.
Related Reading | Bitcoin hash rate continues a death spiral after China suppresses miners
Here is what the pETH token price and trading volume chart looks like now:
pETH price rapidly goes down | Source: Compass Mining Memo
The chart shows that the price of pETH corrected quickly after the announcement.
Also for pBTC, the chart below highlights the trend of its price and volume:
pBTC plummets following rewards suspension | Source: Compass Mining Memo
Two other notable conclusions in the chart are that pETH has reached a single-day trading volume of US$2 million for the first time in history, but pBTC only hit a monthly high.
The other high volume of pBTC trading volume occurred in April and May. The first one corresponds to the flooding event of a coal mine in Xinjiang, which caused Bitcoin miners to cut off power, and the second corresponds to a 21% difficulty adjustment.
The mining pool team plans to pack and transport their mining machines to another location within 60 days, after which the rewards are expected to return to normal.
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It should be noted that although the rewards of wBTC and wETH are suspended, the mining pool is still providing rewards in Mars tokens.
Mars is the platform’s native governance token, and its holders can usually vote on platform-related decisions.
However, no Mars holder can vote for the decision to cancel the rewards of wBTC and wETH. Prin took the initiative.
immediately, Bitcoin The price is approximately US$34,000. It has risen by 2% in the past week but has fallen by 7% in the past 30 days.
China’s latest mining crackdown is also the reason for the recent crash of BTC. Because BTC miners were also forced to close their farms and move to other places.
This is a chart showing its price trend:
BTC seems to have stagnated around this point | Source: BTCUSD on TradingView