A Japanese crypto mining business, owned by eCommerce giant DMM.com is in the midst of exiting the business given the lack of profits at current low prices of decentralized currencies.
The mining farm was set up to become one of the top-10 such mining agencies in the world, in early 2018. However, in a matter of 9 months, the decision to wind up operations in this sector by the online retailer was made. Mining equipment owned by it is now being sold to recoup losses incurred in recent months.
DMM mining farm began operations in February 2018, after the decision to start such a venture was made public in September 2017. The mining facility was set up at Ishikawa Prefecture capital city, Kanazawa.
Cryptocurrency mining no longer appears to be the golden opportunity it was back in the first half of 2018, given the number of home-based miners and mining-farms announcing their exit in recent months.
Apart from mining farms, the e-commerce retailer had set up other crypto-based business verticals. DMM Bitcoin exchange was founded when the strong cryptocurrency markets of early 2018 were yet in vogue and were one of the 16 such licensed trading platforms in Japan. It was to launch another new trading platform – Cointap, but has annulled it as of December 25, 2018.
DMM after its successful launch as an e-commerce giant, built end-to-end crypto businesses to ensure it had a first adopter advantage in a new age digital economy platform.
Unfortunately, for not just DMM.com but nearly all of the large players and the retail investors, the golden story of deregulated currencies became a nightmare by mid-2018.
As against popular expectations that cryptocurrencies would continue to grow in value against fiat currencies, like bitcoin reaching $20,000 nearly by the end of 2017, there was a lot of technical jargon, prognosis and declarations of bitcoin reaching values as high as $45,000 to a bitcoin even in June 2018, by celebrity investors and market influencers.
Not to Be
Instead of the expected upward trend, bitcoin and smaller virtual currencies pegged to it hit the downward curve by mid-2018, driven by a host of counter-developments in the industry.
Main detractors of the upward bitcoin curve were the spate of crimes by cybercriminals to own these expensive coins.
Back in Japan, it is just not the miners who are quitting the industry, one of the equipment manufacturers; GMO has also announced that it would stop manufacturing this market.