Japanese E-Commerce Firm DMM Evacuates Cryptocurrency Mining

Jan 3, 2019 at 19:30 Update Date :Jan 3, 2019 at 19:30 UTC

The cryptocurrency market slums have a major impact on investors and the firms, as of the leading e-commerce firm DMM.com has decided to close down their cryptocurrency mining operations. The fluctuations of 2018 had a great influence on the working and functioning of DMM.com. As a result of this, the giant e-commerce firm DMM.com is winding down its cryptocurrency mining business.

DMM.com Announcement of Terminating Mining Operations

The media reports of Nikkei, December 30, shows that the e-commerce website DMM.com made this decision to evacuate the mining operation in the month of September when the crypto market was slumping – causing more loss than profit for businesses. The firm has also decided to sell the mining machines – which could continue until June, as the firm is planning to boycott crypto mining completely.

DMM, one of the largest e-commerce websites in Japan, was founded in 1999. In January 2018, DMM launched a crypto exchange business – DMM Bitcoin – which turned out to be one of 16 licensed trading platforms in Japan.

Three months before launching the crypto business, in September 2017, the giant DMM decided to establish a farm which was aimed to become one of the ten largest mining farms in the world – with a goal of reaching to the top three.

According to the reports, in February 2018, DMM started mining cryptocurrencies like Bitcoin, Ethereum, and Litecoin in Kanazawa – the capital city of the Ishikawa Prefecture.

However, the giant firm now has decided to roll down its mining operations and is halting the making of next-generation bitcoin mining machines. This whole setup and mining caused DMM a huge loss of $321.6 million (35.5 billion yen).

On the day of Christmas, 2018, DMM publicly announced that it would reject the plans of establishing a crypto trading platform – Cointap. This step was taken by the firm to focus more on improving the already existing trading services on the DMM Bitcoin.

Last month, GMO Internet, a Japanese firm had announced to quit the operations like manufacturing, development, and sales used for crypto mining. The firm said that the decline in the cryptocurrency prices have impacted the market demands, and made the crypto environment more competitive.

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