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Mawson Infrastructure Group Launches Bitcoin Mining Operation in Pennsylvania, Exits Australia

Mawson Infrastructure Group Launches Bitcoin Mining Operation in Pennsylvania, Exits AustraliaThe bitcoin mining operation, Mawson Infrastructure Group, Inc., announced that the firm has broken ground at a new site in Sharon, Pennsylvania. Reports detail that Mawson has delivered six modular production units capable of housing 3,528 application-specific integrated circuit (ASIC) bitcoin miners, or approximately 12 megawatts (MW) of capacity. The new Mawson site is capable […]

Blockchain gaining adoption in more than just DeFi: Report

Israeli Startup Chain Reaction Raises $70 Million to Build Blockchain Silicon

Israeli Startup Chain Reaction Raises  Million to Build Blockchain SiliconChain Reaction, a Tel Aviv-based blockchain startup, announced it has raised $70 million as part of its Series C funding round. The objective of the company is to expand its engineering staff to accelerate the production of its blockchain-focused silicon and collaborate in the development of its cryptographic-focused chips. Chain Reaction Raises $70 Million in […]

Blockchain gaining adoption in more than just DeFi: Report

Former Cohasset High School Employee Accused of Stealing Thousands in Electricity to Mine Bitcoin in School Campus Crawlspace

Former Cohasset High School Employee Accused of Stealing Thousands in Electricity to Mine Bitcoin in School Campus CrawlspaceA former school assistant facilities director in Cohasset, Massachusetts, has been accused of operating a cryptocurrency mining operation inside a crawlspace at Cohasset High School. The Cohasset Police Department alleges that Nadeam Nahas stole nearly $18,000 in electricity to power the crypto mining scheme. Former Cohasset School Employee Faces Charges for Electricity Theft in School […]

Blockchain gaining adoption in more than just DeFi: Report

Rumor has it that Dogecoin could shift to proof-of-stake — What does that mean for miners?

Dogecoin shifting to proof-of-stake would be good for the environment, but what impact would it have on miners and ASIC manufacturers?

There are rumors that Dogecoin could switch from proof-of-work to proof-of-stake (PoS). 

Do I know if Dogecoin is switching to PoS?


Do I think it’s going to PoS? Probably not.

But I love the “what if” game.

As a person who works in the crypto mining industry, I do my best to gauge where the market and mining industry are going, along with how that could play out. If Dogecoin makes a change to PoS or some other change to how new blocks are created, it would have massive ramifications for the mining industry.

Here’s a look at a few options and their effects.

Scrypt mining could be devastated

I’m not going to debate whether or not Dogecoin will or should switch to PoS. While it’s hard to determine if the recent rumors about the potential for a switch are true or not, they were enough to have Bitmain supposedly pause Litecoin (LTC) and Dogecoin (DOGE) miner manufacturing.

The larger question in my mind is, What happens to miners if Dogecoin switches to PoS?

First, Scrypt mining would be devastated. DOGE accounts for over 60% of the revenue with Scrypt mining. Take it away, and every L3+, every LT6 and every Mini Doge Pro, literally almost every non-L7 miner not connected to $0.04-per-kilowatt-hour electricity would need to be unplugged immediately.

Network difficulty would likely bounce all over the place for some time, while miners with older equipment struggle with the decision to keep their ASICSs on or turn them off. The apex Scrypt miner, Bitmain’s Antminer L7, would see its profitability reduced by nearly 75%, reducing profits to a whopping $4.83/day at $0.05/kWh.

What about the miners that don’t have an industrial electric rate? At $0.10/kWh, the L7 9050M, which sold for around $9,000 a few weeks ago, would earn you $0.72/day.


A drastic change like this would result in those who had recently purchased an L7 being very unlikely to ever recover their investment, let alone generate any profits.

ASIC manufacturers would be forced to drop prices, further impacting their bottom line

The vastly reduced profitability would inevitably lead to the price of the L7 dropping quicker than it did during the COVID-19-induced crypto crash. Pricing miners solely by their expected ROI time, at $5 a day profit, miners would be looking at the L7 having a price tag between $1,825 (12-month ROI) and $2,737.50 (18-month ROI). This reflects a minimum price reduction of nearly 70%.

How quickly would Bitmain react? Would they gradually reduce prices week after week similar to what Goldshell has done with many of its miners over the past few months? A strategy that repeatedly left a sour taste in the mouths of customers as they watched the price of the miner they just spent thousands of dollars on being slashed repeatedly.

Or would they come out and continue their recent trend of pricing miners fairly?

ASIC resellers would also bear the brunt of the negative consequences connected to a PoS shift by Dogecoin. Many L7 miners are suppliers, and retailers sitting on that would instantly need to be marked down by a substantial amount. However, based on their recent history of price-gouging customers, like charging $60,000 for a KD6 that is barely worth over $1,000 today, it’s doubtful many tears would be shed for them.

Many home miners would flood eBay and similar platforms with Scrypt miners. It would be a race to the bottom as desperate miners attempt to recoup whatever value is left in the hunk of metal that can now only be used as a doorstop or display piece if one is desperate.

Litecoin mining would survive. Those L7s would stay on because they’d still be somewhat profitable, and there really wouldn’t be another choice. It’s doubtful that the market would see a new Scrypt miner that could challenge the L7 to be developed anytime soon unless there already is a more efficient Scrypt miner in development. There are some rumors that Bitmain is working on a miner that would surpass the L7.

That’s a lot of disruption from the move to PoS, and we’ve only looked at one aspect of the crypto ecosystem. Numerous other questions and scenarios would need to be considered.

What would happen to network security?

Would the yield from staking cause DOGE to eventually be labeled a security?

Would Dogecoin be lauded for the change, or would the masses flee from what is now the second-largest PoW coin by market cap?

Now for my favorite what if. This option is unlikely, maybe even impossible, but there are different ways it could play out.

What if Dogecoin breaks away from merge-mining with LTC and creates its own mining algorithm?

Related: Dogecoin Foundation announces new fund for core developers

Innovation and competition are healthy for every industry

What if there’s a GPU mining renaissance? After the Ethereum Merge event, there’s a ton of really cheap GPUs available on the market. Those would get expensive really quickly. Mining purists would rejoice as they build their own mining rigs while trying to figure out how much DOGE they can stack. It really would be cool to see, but it wouldn’t last. The big three manufacturers — Bitmain, Goldshell and iBelink — would scramble to be the first to market with an ASIC miner.

Eventually, they’d each have at least one ASIC miner on the market, and naturally, they’ll get more powerful and more efficient over time. The jumps and increases in difficulty would be ridiculous, and just like with Bitcoin (BTC), it will eventually no longer be profitable to mine DOGE with GPUs. But it could also open the door to something the ASIC manufacturing market desperately needs: competition.

What if, following the short-lived GPU mining renaissance, a door opens for another manufacturer or manufacturers to enter the market? Currently, Bitmain, Goldshell and iBelink are the “big three,” and it’s really Bitmain that has a total stranglehold on the market. So, while it’s likely Bitmain would come out on top, what if there’s someone out there who can be first to market and maintain that lead and establish itself as a credible and reliable ASIC manufacturer?

What if that company decided to branch out into other miners and offer them fair prices? To be fair, we do have to commend Bitmain again for the pricing on its recent rollout of industry-altering miners. Reseller markups are still an issue, but that’s another topic. Perhaps this “new” competitor would adhere to the mantra that customer service actually matters. If customers could get over the reliability concerns and the company built a good product, that could happen. Admittedly, that’s a lot of what-ifs.

Alternatively, there’s a money-grab scenario for Dogecoin. The project could go directly to Bitmain, Goldshell and iBelink and say, “We’re creating our own mining algorithm, and we’ll give it to you and you alone. How much money will you give us?”

What would Goldshell pay to bring life back to a company that has taken a series of body blows from the recent altcoin miners released by Bitmain? Or would iBelink go all out to win the rights to make the miner? IBelink just released a new BM-K3 Kadena miner that boasts 70 terahashes — a nearly 75% increase over the next closest model — and it can’t celebrate because Bitmain is about to trump that with the new KA3 that brings 166 THs. In the case of a Dogecoin offer to ASIC manufacturers, how much would Bitmain pay to maintain its market dominance?

No change could be a good thing

What if DOGE chooses to simply continue with Scrypt mining?

The status quo is not that exciting, but it seems to be the most likely outcome. Sure, there may be some changes that will pass a vote, but Dogecoin will most likely continue to be merge-mined with LTC on the Scrypt algorithm.

Bitmain is likely to continue pushing out L7 inventory before launching a more efficient Scrypt miner later this year AND Goldshell will launch a Mini Doge Pro 2 for home miners that will essentially be two Mini Doge Pros in one box. The upcoming LTC halving, along with the more efficient miners, will probably push several older models to shut down for good.

Crypto markets will go up, and crypto markets will go down. There will likely be some other crypto scandal that no one sees coming that will look incredibly obvious in hindsight. The sun will come up, and the sun will come down. Of course, most suppliers and especially resellers will continue to markup miners and squeeze everything they can out of regular customers.

It’s impossible to know what’s going to happen with Dogecoin in the future, but crypto is one of the few industries where anything can happen on any given day.

Regardless of whether Dogecoin switches to PoS, the crypto mining landscape has always changed rapidly, and Scrypt mining is no different.

Change is coming.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Blockchain gaining adoption in more than just DeFi: Report

Aussie regulator flagged concerns about FTX months before collapse: Report

Australia’s financial regulator raised concerns about FTX Australia not long after it began operations in March 2022, according to documents.

Australia’s financial regulator reportedly raised concerns over FTX’s local Australian subsidiary as much as eight months before the exchange met its untimely end in November.

According to documents obtained by Guardian Australia, officers of the Australian Securities and Investments Commission (ASIC) were concerned about the way in which FTX Australia was operating as it was able to obtain a license in the country through a company takeover.

As per a previous report from Cointelegraph, FTX acquired its Australian financial services license (AFSL) by taking over financial institution IFS Markets in December 2021 before opening up for business months later in March 2022.

This is allowed FTX Australia to effectively sidestep the same level of scrutiny that is usually applied to new AFSL licensees, according to its ASIC chief Joe Longo.

As per newly obtained documents, the regulator reportedly issued a Sect 912C notice to FTX the same month it began operating, which required the crypto exchange to provide documents about its operations for ASIC to assess if it met AFSL license conditions.

With the notice, ASIC can direct the licensee to provide documents specifying what financial services they provide, the financial services business carried on by the licensee and to determine if the licensee satisfies the "fit and proper person test."

A briefing document obtained by the outlet has also confirmed that in the months between the initial concern and FTX collapsing on Nov. 11, the regulator had put the exchange under “surveillance activity” and a total of three notices were issued to FTX.

The document schedule also reveals that the regulator was still concerned about FTXs operations as late as October 2022.

Cointelegraph reached out to ASIC for a comment but did not receive a response before publication.

Related: ASIC fires industry warning shot as it sues BPS Financial over crypto promo

FTX Australia was one of more than 130 FTX-linked companies that halted operations after its parent company FTX went into bankruptcy proceedings on Nov. 11, 2022.

The Australian subsidiary of FTX had its financial license suspended on Nov. 16, 2022, and has gone into voluntary administration.

It's estimated around 30,000 Australian customers and 132 companies are owed money or crypto from the exchange.

Blockchain gaining adoption in more than just DeFi: Report

Finder.com sued by Australian regulator over its crypto yield product

ASIC claims a crypto yield-bearing product from Finder’s registered exchange was unlicensed; the firm disagrees but has declined to say if it will fight the suit.

Financial product comparison website Finder.com is being sued by Australia’s financial services regulator for allegedly offering a cryptocurrency yield-bearing product without the required license.

It’s the second local provider of a crypto yield product to be targeted by the regulator, following action against Block Earner in November

The Australian Securities and Investments Commission (ASIC) began court proceedings on Dec.15  against Finder.com’s subsidiary Finder Wallet,a locally registered digital currency exchange.

ASIC alleged that the Finder Earn product was an unlicensed financial product and that Finder Wallet breached product disclosure requirements and failed to comply with obligations pertaining to distributing financial products in a targeted manner.

Finder Earn offered users an annual yield of between 4.01% and 6.01% for depositing the Australian dollar-pegged stablecoin True AUD (TAUD).

ASIC claimed the product was a debenture — a debt instrument unbacked by collateral — which requires an Australian Financial Services (AFS) license.

It claimed that Finder Earn “exposed consumers to potential harm” as they may have been offered a product “not suitable for them.” Finder disagrees with this assessment.

“We do not share ASIC’s view that Finder Earn can be regarded as a debenture,” a Finder.com spokesperson told Cointelegraph.

“Since Finder Earn was launched in November 2021, we have proactively engaged with ASIC and have cooperated fully with all ASIC requests for information.”

Finder Earn was “sunset” on Nov. 24, which ASIC claimed was due to it notifying Finder Wallet of its concerns.

The Finder.com spokesperson claimed the decision to discontinue the product “was a strategic business decision” due to increased interest rates and “not brought on by regulatory review.”

“We were in the process of this sunset when we were notified [ASIC] might take a closer look,” they added.

Both ASIC and Finder.com’s spokesperson said that all user funds were fully returned following the termination of Finder Earn.

Finder said it “will not be commenting further as this matter is now before the courts” when questioned if it would contest the suit.

Sarah Court, ASIC’s deputy chair, said in the announcement that its “message to industry is clear — just because an offer involves a crypto-asset related product does not guarantee it will fall outside the current regulatory regime.”

Related: Australian 'token mapping' consultation paper to release in early 2023: Treasurer

ASIC’s suit against Finder.com marks its third action in as many months against crypto financial products and the firms who provided them.

In November ASIC sued fintech firm Block Earner for similarly offering three crypto-backed fixed-yield earning products without an AFS license. In response to the suit, Block Earner’s CEO lashed out at the “lack of clarity” in the country’s financial licensing regime.

Financial services firm BPS Financial was sued by the regulator in October for “unlicensed conduct” related to its “Qoin” token, with alleged “misleading” representations that Qoin was regulated in Australia.

ASIC chair Joe Longo previously warned that “action will be taken” on firms that promote what he called “high-risk and niche” crypto investment products.

Blockchain gaining adoption in more than just DeFi: Report

A loophole allowed FTX to secure its Aussie license without full checks: ASIC’s Longo

ASIC's Joseph Longo pointed the finger at a loophole that allowed FTX to acquire an Australian Financial Services License under its watch.

Joseph Longo, the chairman of the Australian Securities and Investments Commission (ASIC) is calling for a regulatory loophole to be closed that allowed FTX to acquire an Australian Financial Services License (AFSL) in the country without the full suite of checks.

According to a Dec. 5 report from the Australian Financial Review, Longo made the comments while speaking at a joint parliament committee on corporations and financial services on Monday local time.

A major topic the committee dug into was of course the recent FTX and Alameda Research meltdown led by the now-troubled founder Sam Bankman-Fried.

Longo defended his regulatory body when being grilled on how, and why the regulator let FTX acquire an AFSL under its watch, explaining that a regulatory loophole prevented ASIC from intervening or conducting the proper checks.

FTX was reportedly able to bypass the regular process for obtaining an AFSL when it took over IFS Markets in Dec. 2021, which effectively gave it access to its license. FTX Australia later began operating in Mar. 2022.

Longo said this loophole provides ASIC with no legal grounding to investigate corporations in the same way that new licensees are scrutinized.

FTX “bought [its AFSL] off an existing license-holder. Under current statutory arrangements, it is a normal thing to do,” Longo said, adding: “we were notified about that position, but it is very easy to trade someone else’s license.”

Longo also added that ASIC had specifically requested the former government led by Scott Morrison to plug this regulatory gap, but the issue was ultimately left unaddressed.

As it stands, ASIC is only able to examine a company back to front when it's applying for a new AFSL, and therefore determine whether it has adequate compliance and capital controls in place.

Related: Digital assets could add $40B a year to Aussie GDP: Tech Council report

In response, Senator Deborah O’Neill stressed that the loophole allowing FTX to essentially have an ASIC sign-off without being investigated by the regulator presents a worrying prospect to Australian consumers.

“In addition to trading of crypto in and of itself, just because you have an AFSL ticked off by ASIC, there is no guarantee there is integrity?”

“FTX has had little or no [corporate] governance. We are talking about a real cowboy who came in, paid the price [for an AFSL] ... An AFSL was ticked off for all intents and purposes from ASIC ... but there is huge risk here,” she added.

Blockchain gaining adoption in more than just DeFi: Report

Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of Hardware

Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of HardwareRussia’s market for specialized crypto mining equipment has been seeing high demand over the past couple of months, with buyers attracted by the low price tags. Russian experts also predict an increase in the supply of used coin minting hardware as large foreign companies leave the industry. Russian Demand for Powerful ASIC Miners Skyrockets in […]

Blockchain gaining adoption in more than just DeFi: Report

Crypto miners in Russia capitalize on the bear market by hoarding ASIC devices

Miners in Russia have likely been increasingly buying crypto ASICs due to reduced prices of mining devices as well as low-cost energy.

Cryptocurrency miners in Russia appear to be unbothered by the ongoing crisis of crypto mining as the local demand for mining hardware has reportedly been on the surge in Q4 2022.

Some crypto mining hardware distributors in Russia have faced a significant spike in demand for mining-designed application-specific integrated circuit (ASIC) chips, the local news agency Kommersant reported on Dec. 1.

Local dealer Chilkoot reported its ASIC sales in November and October exceeded its entire sales made in Q3. Over the past nine months, the distributor reportedly sold 65% more hardware than in 2021.

“We are working with legal entities, and we see that they began to buy 30% more equipment in one transaction than at the beginning of the year,” Chilkoot development manager Artem Eremin said.

BitRiver, Russia’s largest crypto mining-focused data center facility, has also recorded a notable increase in demand, reportedly seeing 150% growth over the past 10 months.

Russia’s reported surge in demand for cryptocurrency mining hardware comes amid tough times for the mining industry, with total Bitcoin (BTC) mining revenue hitting two-year lows in late November. A number of mining firms — including Argo Blockchain and Core Scientific — have even questioned whether they would be able to continue operations due to massive losses driven by the current bear market in crypto.

Miners in Russia have likely been increasingly hoarding crypto ASICs due to reduced prices of mining devices as well as low-cost energy.

51ASIC co-founder Mikhail Brezhnev reportedly said that Bitcoin mining in Russia can still be profitable despite a massive drop in BTC price this year. According to the executive, the cost of mining 1 BTC at the electricity cost of $0,07 per 1 kilowatt-hour with the most up-to-date equipment can generate roughly $11,000. At the time of writing, Bitcoin is trading at $16,975, down about 70% over the past year, according to data from CoinGecko.

Related: Russian bill would legalize crypto mining, sales under ‘experimental legal regime’

The industrial crypto mining market in Russia has been benefiting from the current market situation, BitRiver’s financial analyst Vladislav Antonov reportedly said. He noted that the demand for ASIC equipment in the wholesale segment increased due to a drop in purchase prices, which have become as close as possible to the cost of production. That is the best entry point for investment, the expert reportedly said.

According to Antonov, a mining entry during a bear market can potentially generate “significant profit of tens of percent” over a three-year period.

Blockchain gaining adoption in more than just DeFi: Report

Block Earner sued over crypto-yield products, CEO calls for clarity

Block Earner CEO Charlie Karaboga said it was a “disappointing outcome” given it had spent “considerable resources” to adhere to existing guidelines.

The CEO of fintech firm Block Earner has lashed out over the “lack of clarity” in Australia’s financial licensing regime after his company was sued by the country’s financial services regulator for providing unlicensed crypto-based investment products.

The Australian Securities and Investment Commission (ASIC) announced on Nov. 23 local time that it started civil legal proceedings against the company because it offered three crypto-linked fixed-yield earning products without an Australian Financial Services (AFS) license.

ASIC stated that the products should have been licensed as they were “managed investment schemes” where investors contribute money that is pooled together for an interest in the scheme.

The products, named “Crypto Earner”, “USD Earner” and “Gold Earner,” offered yields through users depositing Australian dollars that would be converted to Bitcoin (BTC), Ether (ETH), USD Coin (USDC) or PAX Gold (PAXG) depending on the product according to Block Earner’s website.

The crypto-assets are then lent to borrowers on Decentralized Finance (DeFi) protocols Aave (AAVE) and Compound Finance (COMP) to generate yield for the product.

ASIC Deputy Chair Sarah Court aired her concern that Block Earner offered the products without “appropriate registration” or an AFS license that she claimed left “consumers without important protections,” adding:

“Simply because a product hinges on a crypto-asset, does not mean it falls outside financial services law.”

In an emailed statement to Cointelegraph Block Earner CEO and co-founder, Charlie Karaboga, said although the firm “[understands] the backdrop” it was a “disappointing outcome.”

He said it welcomes regulations, claiming the firm “spent considerable resources building regulatory infrastructure” to be able to offer services “under existing guidelines provided by ASIC.”

Related: FTX Australia’s license suspended as 30K Aussies left in the lurch

Karaboga took aim at the unclear regulatory environment for crypto in the country and said the “lack of clarity [...] creates friction between regulators and innovators,” adding:

“In an ideal world, we would build these products in a regulatory sandbox with more clarity around licensing regimes. In the future, we look forward to working with ASIC and other regulators in this space.”

According to Karaboga, Block Earner had filed for a credit license and advised ASIC it would apply for an AFS license for its upcoming products as “the licensing requirements are clear.”

ASIC has previously given a warning to crypto-asset providers in the country after it took action against the creators of the Qoin token.

It said its “key priority” is targeting “unlicensed conduct and misleading promotion of crypto-asset financial products” after it alleged the Qoin token creators were “misleading” its users.

Blockchain gaining adoption in more than just DeFi: Report