OKX, one of the major players in the cryptocurrency exchange space, has recently announced the closure of its mining pool services, effective from February 25th, 2024. This move comes as a part of OKX’s strategic pivot towards emerging technologies and decentralized finance (DeFi). During the launch of a new Jumpstart project, ZetaChain (ZETA) its strategy was highlighted.
The crypto landscape is undergoing a significant shift, where proof-of-work (PoW) mining is facing increasing scrutiny, and proof-of-stake (PoS) is gaining traction. The closure of the OKX mining pool marks a notable shift for the exchange, which initially built its reputation by serving crypto miners in China. However, the Chinese government’s crackdown on crypto in 2021, coupled with declining interest in PoW mining due to its energy consumption and environmental impact, prompted OKX to re-evaluate its priorities.
After a recent flash crash that involved its native OKB token, OKX has stated that it will focus on risk management and market stability.
We will further optimize spot leverage gradient levels, pledged lending risk control rules, liquidation mechanisms, etc., to avoid similar problems from happening again.
Among the top 70 Bitcoin-focused mining pools, according to data from Mining Pools, OKX secured the 36th position, with a total hash rate slightly exceeding 496 TH/s. OKX launched its mining pool services in October 2018 and offered support for cryptocurrencies such as Bitcoin, Litecoin, Ethereum Classic, and Decred. The latest move comes as Bitcoin is about to undergo its fourth halving in April, which is expected to reduce miner rewards from 6.25 to 3.125 BTC.
While OKX winds down its PoW operations, it’s simultaneously gearing up for the launch of the ZETA token on its Jumpstart platform on January 30th, 2024. This project, limited to users in specific regions, aims to build a full-chain blockchain enabling interoperable decentralized applications (dApps) across various networks, including Ethereum and Bitcoin.
This strategic move aligns with OKX’s broader focus on DeFi and emerging technologies. ZetaChain’s vision of a unified blockchain ecosystem resonates with the growing demand for seamless cross-chain functionality and interoperability within the crypto space.
The closure of its mining pool and the launch of ZetaChain mark a significant turning point for OKX. By focusing on DeFi, emerging technologies, and risk management, the exchange is adapting to the evolving crypto landscape and positioning itself for future growth.
As previously reported, the crypto exchange has secured prominent branding on McLaren’s race cars for 20 races in the upcoming season. This marks an expanded partnership that capitalizes on the growing convergence of Web3 and motorsport.
