HashFlare, a cloud-based Bitcoin Mining Service has shut down its operations. The platform ended all Bitcoin-related mining services because of the lack of profitability.
In a statement on the company’s Facebook page, HashFlare announced its decision to end operations. It said,
We have made every possible effort in order to resolve the problem that has arisen – for instance, we have considered a variety of technical solutions, which would have allowed us to lower expenses related to maintenance and electricity. However, due to the general instability of the market, the actions we have taken could not significantly influence the current situation.
According to the mining service, the payouts to users have been lower than the maintenance fees for 28 consecutive days. Because of this, the platform had no choice, but to terminate service. This decision was made according to a clause in the platform’s Terms of Service. However, many users have been complaining that the company has put restrictions on withdrawals, therefore supporting longstanding allegations that their operations are not above par.
HashFlare, however, said that they were open to relaunching the platform and resuming service in the case that the price of bitcoin stabilises. While the price of Bitcoin has fallen over 60% since the start of the year, it is currently in a period of mini-resurgence.
HashFlare contract owners paid pre-paid yearly fees for a fixed amount of cryptographic processing power and the daily service and maintenance fees. In exchange, HashFlare agreed to buy, operate and maintain bitcoin mining hardware on customers’ behalf and share part of profits with the contract holders.
Because the costs were more fixed compared to the rewards, the risk of reward was always very high. According to users, HashFlare has refused to refund the remaining annual contract fees. Some customers have successfully disputed these contract fees with credit card providers while others have said that they are going to go the legal route and try to recover their investments.
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