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The DMM.com e-commerce power plant announced that it is reducing its mining cryptocurrency operations, the last company to turn back after a disastrous year for the mining industry.
The Japanese giant of e-commerce, one of the largest online retailers in the country, announced the decision on December 30th, Nihon Keizai Shimbun reported. However, DMM made the decision in September, when the company identified a decline in profitability following the collapse of cryptocurrency prices.
The embarrassing move comes less than 12 months after the company decided to participate for the first time in the extraction of cryptocurrencies. Now, according to the report, DMM is preparing to sell its old mining equipment.
To make matters worse, this process should continue in the second half of 2019, including a lack of demand fueled by poor price performance.
Launched for the first time in 1999, DMM.com announced that it would be transferred to encryption in September 2017, near the peak of the BTC bubble.
At that time, the company had planned plans for its mining division to be one of the top 10 in the world by the end of 2018, before moving into one of the coveted "top 3" positions thereafter.
Currently the company also operates DMM Bitcoin, one of 16 cryptocurrency exchanges licensed by the authorities in Japan, although for the moment there is no indication that the company intends to conclude its exchange.
The mining operations of DMM began in a facility in Kanazawa city in February 2018, with Bitcoin Core (BTC), ETH and LTC as the cryptocurrencies of choice for the company at the time. Until recently, the company had planned to launch another service in the cryptographic space, but has since decided to focus on existing activities.
While few would have predicted the failure of the DMM at launch, news is becoming increasingly common in the crypto mining sector, with an ever-increasing number of companies failing bankruptcy or deciding to skip the ship before sinking further.
Even the producers of mining equipment are in danger, with the Japanese colleague OGM announcing that it suspends all the work on its next generation Bitcoin mining equipment, in light of the ongoing disappearance of the cryptocurrency. News on GMOs suffered a loss of $ 324 million on its mining encryption business, which the company noted as "extraordinary".
