A statement recently posted by Hashflare on Stopping SHA256 Contracts caused a lot of panics in Telegram group and customers. It was way too difficult to understand what exactly that statement means. Even admins, Daddy and Dark Force Witch announced to not continue with being an Admin (as a volunteer) with Hashflare anymore.
In this article, we will try to decode what exactly the statement refers too. It seems like Hashflare is not aiming to give a clear answer of their action although it is understandable as Crypto market is down and crypto related businesses simply cannot guarantee anything. Fear of the market in simple words.
There is a lot to discuss on if Hashflare is right or wrong, but we will not do it in this article. Let’s jump to the statement decoding directly.
“Dear users! As you know, the last few months have been a difficult time for the cryptocurrency market, which has also affected the operation of our service.”
- This simply means that the market is suffering, so do Hashflare when it comes to mining. It is unprofitable since Difficulty not dropping and BTC price not rising.
“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.”
- This means that they did not terminate all accounts when mining became unprofitable on 11.06.18 00:45 but to at least help customers to not lose hope. They were thinking to lower the MEF but it looks like, there is no way to do so as mining profitability is below MEF and is a complete loss for Hashflare and they could not find any other solution except not terminating contracts.
“For over a month our users encountered a situation when the payouts were lower than the maintenance fees, resulting in zero accruals to the balance. As of 18.07.2018, the payouts were lower than maintenance for 28 consecutive days.”
- Nothing special here. As from 11.06.18 00:45 to 18.06.18 00:45 the mining was unprofitable. Only on 19.06.18 00:45 the MEF was lower than the payout and from 20.06.18 00:45 until now, the MEF is higher than payouts. This means for 28 continues unprofitable days, Hashflare did not terminate contract following their 5.5 ToS (we will come to this later in below)
“BTC mining continues being unprofitable, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling SHA hardware and today, on 20.07.2018, stop the mining service of active SHA-256 contracts in accordance with clause 5.5 of our Terms of Service, which are required to be accepted when creating a purchase and are the basis of concluding the contract.”
- Finally, they have finally followed their own ToS here which is STOPPING MINING officially. This is where the FIRE began and people went crazy about.
- They have started “stopping” SHA256 from 18.07.2018 and until 20.07.2018, all SHA256 is finally stopped, as per them. If they are lying, we will notice it through difficulty and experts analysing this.
- So this paragraph simply means that they have stopped SHA256 and following the 5.5 of our Terms of Service.
- 5.5 of our Terms of Service is all about “Mining process will stop if the Maintenance and Electricity Fees will become larger than the Payout.” and “..21 consecutive days the Service is permanently terminated “. Meaning, all contracts will be terminated on August 10th, 2018 if still by then, the MEF is higher than the payouts.
- “..which are required to be accepted when creating a purchase and are the basis of concluding the contract.” this is simply extra words to create confusion.
“We expect that the cryptocurrency market situation will stabilize in the nearest future and we will be able to offer our users new advantageous solutions.”
- Simply means, if the market gets better, they will not terminate but hopefully, allow old/current members to continue mining (see 4th paragraph, 4th line).
“We will continue to inform you about any changes. Stay tuned for updates!”
- This means, simply be patient and we will come back to you either with good news or bad news. All depends on the Crypto Market.
This is just an opinion. I hope contracts are not terminated and hopefully we will get them running again.