DMM.com Exits Crypto Mining: What It Means for Japan’s E-Commerce Landscape

Profitability Concerns Lead to Shutdown

In a move that has sent shockwaves through the crypto community, DMM.com Ltd., the giant of Japanese e-commerce, has decided to pull the plug on its crypto mining operations. The primary reason? The not-so-shocking reality of dwindling profitability. Who knew that mining digital coins wasn’t as easy as finding loose change in the couch cushions?

From Euphoria to Reversal: The Mining Journey

DMM dipped its toes into the crypto mining waters in September 2017, channeling excitement and resources into extracting major cryptocurrencies like Bitcoin, Ethereum, and Litecoin. At one point, the company had a colossal mining farm situated in Kanazawa, buzzing with a staggering 1,000 mining machines. However, as of early June 2019, plans for a public mining showroom were abruptly scrapped, largely due to security concerns — primarily the fear of hardware theft, which is ironically reminiscent of trying to keep your slice of pizza away from a hungry friend.

The Domino Effect: Other Crypto Plans in Jeopardy

As if pulling the rug out from under its mining operations wasn’t enough, DMM is also reconsidering launching its highly anticipated crypto trading app, “Cointap.” Originally slated for a festive launch on December 25, 2018, the app find itself marooned in a hostile crypto market, especially after high-profile breaches like the Coincheck hack. It’s as if they’re trying to sell water during a drought — let’s just say, good luck with that!

Industry Insights: A Broader Crypto Contraction

DMM isn’t alone in its crypto exodus. It follows the footsteps of other major players like GMO Internet Group, which has also decided to stop developing Bitcoin miners after reporting significant losses. The ripple effects of these market changes raise questions about the overall viability of the crypto mining landscape in Japan. With reports of mass selloffs of mining hardware in China, it seems the mining industry is getting a much-needed haircut.

The Future: Holding the Course or Cutting Loose?

Despite these challenges, there’s still hope for DMM’s regulated cryptocurrency exchange, which has been active since January 2018. The market may be turbulent, but it hasn’t completely sunk — yet!