The company cites declining virtual currency prices and increased competition as the reasons behind the change.
On December 30, the Japan-based online marketplace DMM.com announced it will cease mining cryptocurrency after just over a year in the business, according to an article in Nikkei. The e-commerce company will reportedly stop mining cryptocurrency due to the recent price slump, which, along with stronger competition, has decreased profitability. DMM.com had launched its virtual currency division in October 2017 with the intention of creating one of the largest mining farms in the world.
Additionally, on December 25, DMM.com Group announced it was canceling the release of its crypto trading app, dubbed Cointap. However, the announcement does state that the DMM group will still offer “virtual currency trading services” on its DMM Bitcoin exchange platform. According to Nikkei, DMM founder Takashi Kameyama stated that he will “work hard” on improving the exchange platform.
Several mining participants in the Japan and Asia cryptospheres have felt the sting of crypto winter. Just last week, Japanese IT company GMO Internet announced it would no longer manufacture or sell mining rigs, citing an “extraordinary loss” to the company’s bottom line. The same day, it was reported that crypto mining giant Bitmain, which is based in China, would be laying off some staff.
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