In accordance with the most recent statement issued on November 23rd, Binance Pool has now included Ravencoin (RVN) to its token list. For its RVN pool, Binance Pool will charge 1% in fees.
The $500 million funding pool of Binance was first introduced last month. In the midst of a crypto market turmoil, this was done in order to lend to struggling mining operations. Because of power issues, cryptocurrency platforms are switching from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanisms, and the transition has proven to be difficult for the community of miners.
After the Merge, Ethereum’s Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism changed, and many Ethereum (ETH) miners began mining different coins such as Beam (BEAM), Ravencoin (RVN), and Ethereum Classic (ETC).
But Binance was not the sole cryptocurrency company to recently introduce a loan facility. A $250 million fund was also established in September by Jihan Wu, the billionaire Bitmain creator, a manufacturer of crypto mining equipment. The money raised will be employed to purchase property from struggling miners, particularly those that mine Bitcoin (BTC). During September, Maple Finance, a DeFi application, launched a $300 million lending pool. The money will be applied to lend to small to mid-sized Bitcoin (BTC) miners in Australia and North America primarily.
The gloomy market trend has caused cryptocurrency mining companies all over the world to struggle. Because of growing energy expenses, increasing mining difficulty, and declining token prices, the mining sector has been beset by a string of bankruptcies.
Two months ago, among the biggest providers of crypto mining data centers, Compute North, applied for the Chapter 11 bankruptcy protection. Around 200 creditors were owed $500 million by the mining company.
Core Scientific, a Texas-based mining company, showed in its filing with the Securities and Exchange Commission (SEC) that cash may be at a premium by the end of the year. Riot Blockchain Inc., a mining company with headquarters in Colorado, also reported a revenue decline of nearly 17% in the third quarter of 2022 in a previous filing with the Securities and Exchange Commission (SEC).
According to its most recent SEC filing, Australian mining company Iris Energy also missed a payment on a loan totaling $107.8 million. It then disconnected the equipment that was being held as collateral, reducing some of its mining capability.
The mining sector may see a catastrophe if the cryptocurrency market continues to decline. This seems to be due to the direct correlation between mining output and the value of Bitcoin (BTC).