Japan’s DMM Says Enough on Crypto Mining Business

Japan’s DMM Says Enough on Crypto Mining Business

Japanese e-commerce giant DMM.com will close its crypto mining business due to weak profitability according to a report from local magazine Toyo Keizai.

DMM will finish its shutdown process by the end of the second quarter of 2019. “Deteriorating profitability is the main cause,” for a close of a new business opening in September 2017.

Back in September 2017, DMM group announced that it would operate a large-scale Cryptocurrency mining farm in Kanazawa city, capital of the Ishikawa Prefecture.

At that time, DMM aimed it “will operate a mass-scale, made-in-Japan quality, mining farm whose operating size will be unmatched by any of the domestic operators.” Also, to be one of the three most important crypto farms in the world.

Operations started in February 2018 with the mining of Ethereum, Litecoin and the crypto king Bitcoin. However, in December 2018, the company announced its decision to stop mining operations by the second half of 2019.

Previously, DMM also announced that its crypto app Cointap would not be launched as planned as they are having problems attracting new customers due to weak Cryptocurrency prices. They also reported their problems with security after planning to open mining to the public.

 

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