Genesis Mining Offers Users Discounted BTC Contract Upgrades to Avoid Termination

  • Genesis Mining recently decided to offer discounts for contract upgrades, so users won't see their contracts get terminated.
  • This because of the bearish trend that has been affecting the crypto market, and the increasing mining difficulty.

Genesis Mining, the world’s largest cryptocurrency cloud mining provider, has recently revealed its bitcoin mining contracts are no longer profitable because of the bearish trend most cryptocurrencies have been enduring. As an alternative, it’s offering users a contract upgrade at a discount.

According to a recently published blog post, Genesis Mining has been paying attention to its users’ concerns regarding their mining rewards. The company noted, however, it is only able to influence the infrastructure it uses to mine, not bitcoin’s price or mining difficulty.

The bearish trend that saw bitcoin, the flagship cryptocurrency, drop from a near $20,000 all-time high in mid-December to about $6,500 at press time, coupled with a “heavily rising difficulty around April and May” saw rewards dwindle.

As a result, some user contracts are now mining less than the daily maintenance fee requires to be covered, and thus they entered the 60 days grace period, after which open-ended contracts will get terminated.

Genesis Mining

The 60-day grace period is mutually agreed upon by Genesis Mining and its users when contracts are sold. It starts whenever mining rewards go below what it costs Genesis Mining to maintain the infrastructure used in the user’s contracted hashrate. If after the period the market doesn’t recover, and the user’s mining power remains unprofitable, the contract is terminated.

To give users a chance of maintaining their contracts Genesis Mining lowered the price of its premium service Radiant. It essentially converts the contract from open-ended to 5 years with no termination, and reduces maintenance fees to $0.14 a day.

As CryptoGlobe covered the bearish trend also affected other cloud mining companies. Hashflare, one of Genesis Mining’s biggest competitors, terminated users’ active bitcoin mining contracts for the same reason last month.

Notably Genesis Mining managed to stay profitable for longer than Hashflare. The company, known partly for its BTC awareness campaign that targeted Warren Buffett, has earlier this year shown faith in EOS by becoming a block producer.

While some users may upgrade the service, others could get lucky if they don’t. According to bitcoin bull Max Keiser, the flagship cryptocurrency’s “price follows hashrate.” Its hashrate is, according to available data, at over 50 exahash, up from 5 in only 12 months.

Hacked Exchange Cryptopia Enables Trading in 40 Different Currency Pairs

New Zealand-based digital asset exchange, Cryptopia has reportedly resumed trading on its exchange as it is now allowing 40 different trading pairs. This, after Cryptopia recently experienced from several different security breaches.

Support For Bitcoin, Litecoin, Dogecoin Pairs Added

Cryptopia’s management announced (via Twitter on March 18th) that it is planning to expand its list of coins which will again be supported on its trading platform. As noted on Cryptopia’s official support website, the exchange has enabled several different trading pairs (as of March 19th, 2019) with major cryptocurrencies. These include bitcoin (BTC), litecoin (LTC), and dogecoin (DOGE).

In response to Cryptopia’s announcement, Twitter user @dgb-chilling, a supporter of DigiByte (DGB), a cryptocurrency that uses five different mining algorithms, said that he had emailed the exchange’s support team to inform them regarding the coin’s latest update (version 6.17.2). He added that “an upgrade was recommended but not mandatory.”

Meanwhile, Chuck Norris (@CryptoTweet6) remarked: 

Now this is good news! Let’s hope the rest of the coins will be released for trading swiftly.

Other users also considered it “good news” that the compromised cryptoasset exchange was gradually resuming its operations. However, one social media user asked when Cryptopia would start enabling deposits while another inquired about why his ARK coins were still not recoverable from the trading platform. He claimed that he had deposited 1,000 ARK, currently valued at around $628, (a popular proof-of-stake based coin) on Cryptopia. The user also complained that his coins were missing “missing because [the exchange] did not update the ARK wallet."

Tens Of Millions Of Dollars Stolen In Hack

On February 27th, 2019, Cryptopia’s management announced that it was “assessing the impact incurred as a result of the hack” which led to the theft of tens of millions of dollars in cryptocurrency. Last month, Cryptopia’s support team had also estimated that the total loss incurred due to the security breaches was of around 10% of its total holdings (in the worst-case scenario).

Notably, the exchange’s official Twitter account had been silent for several weeks (since Feburary 14th). However, it released several announcements, starting in late February, in which it revealed that its staff members were working on securing each customer’s account individually. Cryptopia’s management also noted that it was taking the appropriate measures to ensure that its trading platform is secure when it is officially back online.