Mysterious Chinese Bitcoin Mining Pool Rises to the Sixth Largest After the Halving
A new china-based bitcoin mining pool named Lubian.com has accounted for 6.2% of the global bitcoin hashrate, just three weeks after processing its first block. The pool is currently the sixth-largest bitcoin mining pool with a 7.32 EH/s hashrate, according to btc.com.
The mysterious pool, popping up overnight after the halving event, has captured a lot of attention in the mining sector, but no one seems to know who is behind it. Data shows that the operation first surfaced on April 24 when it mined its first block at height of 627,441.
The pool’s website is simply designed with an advertisement reading “it is the safest high yielding mining pool” in Chinese.
According to Chinese crypto news outlet BlockBeats, Lubian was originally spotted by an engineer named Spicalab who later reported it to btc.com. The pool was previously named “Buffett” and was renamed to Lubian.com after the block height of 629,755.
The name of the pool Lubian (literally means roadside in English) has triggered a lot of guesses inside the industry, with some speculating that it may be founded by former employees from Bitmain (whose Chinese name reads “BiTeDaLu”) or someone related to Binance (whose Chinese name reads “BiAn”).
People close to the two companies have denied this. And it is also unlikely a “spinoff” of other mining operations as other pools didn’t see a major drop off in hashrate.
According to Dovey Wan, Primitive Ventures’ founding partner and industry commentator, Lubian might be a private pool but now reveals itself to be public as its hashrate did not see a pop.
Whoever owns the pool, must have owns the bootstrapping hashrate to start with as other pools didn’t see a major drop off
5% of total hashrate owned by a single entity, this is how the mining game is heavily skewed towards the mining whale 🐋 or mining shark 🦈
Will dig more
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) May 12, 2020
Regarding this, 8btc has reached out to some industry insiders who told us that the pool is highly likely operated by several large mining farms in China. We’ve contacted Lubian and some mining farms for additional details, but received no response as of press time.
As the pool entered the picture at an “interesting time” immediately after the third bitcoin halving occurred, it is worth to be seen who is behind it and whether it will keep the rise in hashrate.
After the halving, bitcoin miners now get 6.25 BTC per block rather than the previous 12.5 BTC. Most miners operating older machines are expected to leave the network for unable to profit.
Earlier in April, a Chinese mining pool Bytepool has shut down as a result of a major drop in hashrate impacted by the coronavirus outbreak. On the other hand, top crypto exchange Binance has launched its mining pool offering generous referral bonuses.
Under such a circumstance, people are wondering why would miners build their own pool at such timing and to what extent such latecomers could change the mining industry.