Another company did not survive the crypto-winter. Coinhive representatives announced the termination of work.
Butterfly Effect
Perhaps the most obvious effect after a crypto-catastrophe in 2018 was an almost instant reduction in the number of mining companies. As the price of bitcoin and other cryptocurrencies fell, mining giants such as GigaWatt were forced to close.
Coinhive has also fallen victim to a serious market downturn. Recently, the company officially announced the closure. In their announcement, Coinhive representatives made it clear that from March 8, 2019, the company would completely cease to function, because it is no longer economically viable.
Sinking ship
The firm explained that the hash rate fell by 50% after the last Monero hard fork, which affected their profits. In addition, the crash of 2018 reduced the XRM value by 85%.
As soon as the next hard fork Monero was announced on March 9, 2019, the company realized that it would not be able to carry out its activities. However, customers who still have funds in their accounts will be able to withdraw money.
“Your dashboards will still be available until April 30, 2019, so you can withdraw if your balance is above the minimum payout threshold,” - the report says.
Until now, Coinhive has operated as a JavaScript-based digital currency mining service. It worked using the computational power of the browser installed on the user's computer system.
With the fall of the market, the extraction of currency became unprofitable, and the demand for the services of mining companies almost disappeared overnight.
