Coinhive, the famous crypto mining software tool used in Cryptojacking is shutting down due to the crash in the price of Monero (XMR).
The German-based company launched in 2017 and quickly rose to fame especially among malicious Cryptojacking hackers who used it to make money. Using Coinhive, any website could utilize their visitor’s computing resources to mine Monero and hence get rid of ads. There were two versions of the software: one which needed the permission of the visitor to mine crypto and the other which did not, many websites used the product without taking the users authorization.
Now the company has decided to abandon all its products as “it isn’t economically viable anymore”. Monero has lost over 90% in value from its all-time high at $494. Coinhive explained in a blog:
“The drop in hash rate (over 50%) after the last Monero hard fork hit us hard. So did the “crash“ of the crypto currency market with the value of XMR depreciating over 85% within a year. 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.”
After finding out that a majority of mining is being carried out by ASICs, Monero developers decided to hard fork the network to maintain its ASIC resistant nature. Coinhive announced that it will go out of service on March 9th before the hard fork, but it unclear why the hard fork influenced their decision because after the hard fork ASICs will no longer dominate mining which should actually be more profitable to Coinhive.
According to Coinmarketcap, Monero (XMR) is currently the 13th largest Cryptocurrency with a market cap of $804 Million. It has lost 4.2% in value in the past 24 hours and priced at $47.8 at the time of writing.
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