KuCoin exchange has decided to revoke support for Litecoin and Bitcoin mining pools. The cryptocurrency exchange has maintained that it has decided to stop the services starting from 15th August 2023.
KuCoin has posted a message maintaining that it regrets any inconvenience caused to the stakeholders. The exchange platform shared that the decision was part of the plan for the firm of its evolving business strategy. However, the officials of the enterprise have refrained from sharing any other details on the matter.
Some experts estimate that the decision can be related to the next Litecoin halving. The next halving of Litecoin is going to be important since the 4th event in the series may take a while. It is the third Litecoin halving in 12 years of tenure.
KuCoin Asks Miners to Shift their Mining Pools
The third Litecoin halving will see its block rewards shrinking to 6.25 from 12.5 LTC. However, KucCoin has advised BTC and LTC miners to shift their mining pools before 15th August to other pools to ensure uninterrupted earnings.
KuCoin exchange has also added in its notification that the miners should make arrangements for backup and mining records. To this end, the exchange has granted them a deadline of 27th August 2023. Bitcoin and Litecoin mining pools at KuCoin currently maintain 9.08 EH/s and 3.90 TH/s.
On the other hand, Bitcoin’s global hash rate is 349.19 EH/s and Litecoin has a total hashrate of 792.16 TH/s. Cointelegraph article reported on 26th July 2023 that KuCoin was going to terminate 30% of its employees.
However, KuCoin has thus far refrained from confirming such news. The CEO of KuCoin, Johnny Lyu shared that KuCoin’s performance has been going without any issues. The H1 2023 report indicates that it has gained new users and listed new cryptocurrencies on the platform.
He also maintained that the enterprise is onboarding new members. KuCoin introduced Know Your Customer or KYC compliance. New users have to complete the account verification process before signing up and the existing consumers have to complete KYC to make new deposits.
The exchange platform has maintained that its total clientele is comprised of 20 million registered accounts.
Litecoin has maintained a history of massive surges during its previous halving events. However, the latest halving of the project has created a surprise for its investors. Data projections shared by the CoinDesk market index indicate that Litecoin price has dropped to a monthly lowest range plunging by 6%.
Litecoin blockchain halving has led to the price tanking to $86 per unit. The two prior Litecoin halvings resulted in the price of the LTC coin appreciating followed by declines in upcoming months.
NYDIG researcher Greg Cipolaro has shared his analysis on the matter. He claimed that analysts have set their eyes on LTC price movement on account of the upcoming halving event.
He pointed out that Litecoin’s halving price movement happened in the other direction in comparison to Bitcoin. During the last two halving events, LTC price recorded new ATHs 6-7 weeks before the deadline. However, nearly halving LTC price declined.
Following the same pattern, Litecoin prices reached $112 per unit on 3rd July, marking the highest for the year. But the token price declined by 22% only before 30 days of the halving event.