What Does DMEX Try To Solve

Background/Statues Quo of the Current Cryptocurrency Mining Market

According to rough statistics, the current annual mining output of three mainstream tokens, the BTC, ETH, and Filecoin has exceeded 10 billion USD. it is estimated that the whole mining power market generates over 100 billion USD mining revenue each year.

The inception of the mining power market has produced numerous rags-to-riches miracles. According to the data on the https://pool.btc.com/ website, with current token prices, mainstream mining machines and electricity fees, the annual mining yields of Filecoin, ETH, and BTC can reach 300%, 150%, and 80% respectively. The mining business has a high return rate compared to traditional industries such as retail. Average users can receive additional incomes through easy investments in mining machines or mining power. The mining power market has great investment prospects.

Average users face challenges participating in mining

In the current cryptocurrency circle, professional miners remain a minority group. Many ordinary users want to enter the mining business, yet they are often deterred by different challenges. They are not familiar with issues like which token has the highest mining yield, which mining machine should they buy, and where do they buy them. As a result, many users choose to either wait on the sideline or abandon the idea altogether.

The current mining power market is unfriendly to the average users

The mining power market is gaining increasing popularity in recent years. Numerous users participated in mining through purchasing mining power. For example, investors had paid 10 billion CNY for Filecoin mining machines and mining power, even before the project’s main network was launched. However, the current mining power market has many serious problems.

1. Centralized mining machine vendors always come with trust issues.

Since individual users are buying mining machines and mining power from centralized platforms or mining machine vendors, they have to rely on the vendors to obtain information on their effective mining power. Users suffer major economic losses due to vendors’ dishonesty. They sometimes pay heavily for the mining machines or mining power but receive little or no income.

2. Many investors are not clear about effective storage mining power and cloud storage.

The majority of the average users are confused about the definition of ‘mining power’. They are prone to misleading information. Some users purchased the unprofitable Filecoin cloud space instead of the profitable effective storage power because they mixed up the jargons. Many users suffered a loss.

3. The mining power purchases are not transparent.

Most users have to rely on the centralized platform or mining machine vendors to obtain information on their effective mining power and the proportion of actual mining power versus purchased mining power. This has led to non-transparency in mining incomes and potential economic loss for the average users.

4. Mining power cannot be transferred or sold.

At present, individual user’s mining power is typically purchased from one specific miner. Trading mining power is very difficult for the users if they need to get liquid capital. They can only sell their mining power to another user who uses the same miner service. The transaction procedure is a big hassle. It is nearly impossible to trade across different miners.