Japanese entertainment and e-commerce giant DMM to terminate its cryptocurrency mining business in the country, just months after it set up the operation in 2018.
DMM.com started its crypto mining business back in October 2017. However, it currently plans to leave the business because of falling profitability. The company has been thinking of terminating cryptocurrency mining business in September 2018, if the rumors are correct.
DMM named cryptocurrency exchange business as Bitcoin in January 2018. However, DMM was established in 1999 and it is one of the biggest e-commerce sites in Japan.
“Deteriorating profitability is the main cause. However, the withdrawal process will go over to the first half of 2019.”
DMM To Terminate Cryptocurrency Mining Business – The overall cryptocurrency slump led to the breaking down of the mining business. As a result, this led to the decision to close up the business in September 2018. DMM founder, Keishi Kameyama, recently said that he plans to focus on the exchange business and blockchain going forward.
“I would like users to experience the extraordinary mining site in their lives. From such thought, DMM opened a part of the [mining] farm to the public, but this was canceled in early June as it was difficult to ensure security. Overseas, theft of virtual currency mining machines has been steady, and [there were attempts] even at the DMM’s Kanazawa farm.”
In September 2017, DMM had reported its intention to set up a mining farm. The objective of the farm is to become one of the 10 biggest mining farms in the world in 2018. Furthermore, its end goal is to achieve a position in the main three.
The news came just days after Japanese firm, GMO Internet, announced it would be halting the development, manufacture, and sales of cryptocurrency mining machines, after recording an extraordinary loss of 35.5 billion yen (or $321.6 million).
It said that “the environment is increasingly competitive because of the decreased demand mainly due to the decline in the cryptocurrency price, the decline in the sales price, etc.”