Why is Coinhive Planning To Shut Up Shop Soon?

It looks like the cryptocurrency mining service Coinhive will have to cease all their business operations soon, since they are not economically secure enough to continue the project. It was announced by the team behind Coinhive in a recent blog post.

A JavaScript-based cryptocurrency mining service, Coinhive had become quite popular in the crypto community. It is dependent on a computer code to be installed on websites. Coinhive’s code once installed, could use the computing power of a browser.

For this, the computer needs to load the websites in question. A lot of hackers have tried to use Coinhive’s code to undertake cryptojacking operation. The code in itself is not problematic but its use can vary from person to person.

According to the blog post, the mining service will stop its operations on March 8, 2019. However, users will still be able to access their dashboards until April 30, 2019. Now the question that arises, is why exactly Coinhive is shutting down the business?

To begin with, last year’s cryptocurrecny market hit is a major reason why Coinhive is being forced to shut down. The drop clearly affected the operation.  There has also been over 50 percent drop in hash rate following the last Monero (XMR) hard fork. This convinced the developers that it is time to close now.

The blog post reads:

“This and the announced hard fork and algorithm update of the Monero network on March 9 has lead us to the conclusion that we need to discontinue Coinhive,” the post reads.

It is really unfortunate that Coinhive is having to shut down their once flourishing business. The crypto mining industry has definitely been hit the hardest after the market slump back in last year. It is unclear whether the XMR mining code will remain in the websites that have it installed.

Just this month, Microsoft removed eight Windows 10 applications from its official app store since there was residual XMR coin mining code in those apps.