Poolin, a bitcoin mining pool, has suspended withdrawals. It is now suffering because almost half of its hashrate appears to have gone.
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In an effort to preserve liquidity and stabilize assets, Poolin, one of the biggest Bitcoin mining pools, stopped withdrawing from PoolinWallet. This is significant because 1) Poolin, a China-based mining pool, was operating in China following the mining ban and 2) the pool had approximately 10% of the hashrate before withdrawals were stopped.
There is an easy solution for Bitcoin miners who are concerned about PoolinWallet withdrawals or using their mining pool service. They can switch to another pool in seconds. For example, miners can immediately switch to Slush Pool to set up automatic withdrawals. Although it won't stop Poolin withdraws, switching to another pool will allow the hash rate market to vote in real-time with their ASICs and select a better global pool.
This is exactly what we have seen so far over the past few days. The three-month pool distribution view shows Poolin had 10.5% hash rate. The latest three-day view shows that Poolin's hash rate share has dropped by more than half to 4.83%. Although the three-day view isn't always accurate, it shows a clear trend that hash rate is leaving Poolin quickly.
Poolin's hash rate is at an impressive clip, according to estimates.
Glassnode data allows us to calculate the poolin's Bitcoin block reward share relative to the total market. This is similar to the data above. We can see Wednesday's hash rate share drop to 5.48%. This is the lowest since the China mining poor period in 2021.
Poolin's daily estimated hash rate share dropped to its lowest point since 2021, during the China mining bad period.
The seven-day moving average hasn't changed much in total hash rate over the past few days. One possibility is that Poolin's hash rate found a new home quickly and stayed online.
The seven-day moving average has not shown much change in total hash rate over the past few days.
It is interesting to note that Poolin had announced its partnership back in June 2020 with Three Arrows Capital.
Three Arrows Capital & Poolin Wallet Strategic Partnership
Although Poolin's "liquidity problems" are not known for certain, it is possible that the event may have been caused by the fact that the two companies were financially linked during the fall at Three Arrows Capital in the crypto industry contagion.
Read: Bitcoin Magazine PRO Contagion Report
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By: Dylan LeClair,Sam Rule
Title: Poolin Bitcoin Mining Hash Rate Share Cut In Half
Sourced From: bitcoinmagazine.com/markets/poolin-bitcoin-mining-hash-rate-cut
Published Date: Sat, 10 Sep 2022 00:30:00 GMT
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