Amidst declining profitability, Japanese company DMM.com decided to halt mining operations, Report
DMM.com Ltd, the Japanese e-commerce company has decided to shut its crypto mining business, citing the low profitability as the prime reason, reports the local media outlet Toyo Keizai on December 30.
As per the report, the decision was taken last year in September following which the initial steps towards it started am they are expected to finish towards the end of the first half of this year.
The company has more than 27 million customers on its e-commerce site. They announced their entry into the mining business in September 2017, focusing on cryptocurrencies such as Bitcoin (BTC), Litecon (LTC) and Etereum (ETH). As per the available data till February 2018, in the city of Kanazawa, it operated a large scale mining farm.
Toyo Keizai reported that in April, DMM.com was planning to open a showroom to display its mining operations. But this was withdrawn in June citing security concerns.
Further, in the report, it is suggested that DMM.com is considering the launch of cryptocurrency trading app “Cointap,” which was expected to release on December 25, 2018.
The report cites both the bearish market and hack of Japanese crypto exchange Coincheck in January 2018 as the reason behind this decision of DMM.com as they made it difficult for new traders to enter into the market.
As of now, there is no development indicating that DMM will cease to operate its regulated cryptocurrency exchange, which is operational since last year January.
Meanwhile, after reporting a high loss in Q4 of 2018, the Japanese internet company GMO Internet Group has announced recently their intentions to opt out of the industry.
Simuilerly, crypto miner in China is also facing a hard time to survive.