Crypto exchange OKX will discontinue its mining pool services due to “business adjustments” reasons, according to a Jan. 26 statement.

The platform said it had halted new customer registrations, effective immediately. Existing users will retain access to the platform until Feb. 25, after which all mining pool-related services will be discontinued by Feb. 26.

“Due to business adjustments, OKX will discontinue Mining Pool and related services shortly. We apologize for any inconvenience that may cause you,” OKX stated.

OKX has yet to respond to CryptoSlate’s request for comments as of press time.

Mining pools enhance block-solving efficiency by consolidating computational power from multiple miners. This collaboration enables miners to earn cryptocurrencies by collectively tackling the computational requirements of cryptocurrency mining, ensuring a more stable income.

OKX’s decision marks the end of a service it initiated in 2018. The firm’s pool supported several Proof-of-Work (PoW) assets, including Bitcoin (BTC), Litecoin (LTC), and Ethereum Classic (ETC), and enjoyed some early success.

However, data from Mining Pool shows that its use and adoption have suffered in recent years, as it now ranks 36th among Bitcoin-focused mining pools.

Notably, its website also shows that it has just 17 active miners for all its supported assets, with its BTC pool having a total hashrate of 514 TH/s for Bitcoin, 1.49 MH/s for LTC, and 363.87 MH/s for ETC.

Miners prepare for BTC halving.

OKX’s decision comes at a crucial time: Most miners are preparing for the Bitcoin halving, which is anticipated to occur by April.

The Bitcoin halving is a pivotal event characterized by a 50% reduction in mining rewards to mitigate the influx of new coins into the network. This occurs at precise intervals—specifically, every four years or after completing 210,000 blocks.

Several BTC miners, including Riot Platforms, Phoenix Group, and others, have purchased substantial amounts of mining hardware in preparation for this significant event.

Cryptocurrency rug pulls are not too difficult to be spotted by investors as the majority of such scams usually share distinct and visible features, according to a new report.

Blockchain security auditor Hacken on Oct. 25 released its latest security insights report, aiming to spot the trends in Q3 crypto hacks and evaluate how affected projects approached security.

The report paid specific attention to rug pulls, which is a type of exit scam occurring when a team pumps their project’s token before the sudden withdrawal of liquidity. According to Hacken, crypto rug pulls made up the largest amount of exploits in crypto, accounting for more than 65% of all hacks in Q3 2023.

The reason for so many rug pulls on the market is that it’s easy to create such schemes. “Serial scammers use token factories that exhibit the same behavior to produce fraudulent tokens on a mass scale,” the report notes.

Despite its high prevalence, cryptocurrency rug pulls are “one of the simplest scams to prevent,” Hacken said, providing some tips about such scams, based on its Q3 observations.

One of the most crucial ways to assess a project is checking for an independent third-party audit, according to Hacken. Of the 78 Q3 rug pulls examined by Hacken, only 12 reported having completed “any kind of audit.”

But even when a crypto project provides an audit, users should be vigilant to properly check them, as an audit alone doesn’t always guarantee protection from scams, Hacken noted, stating:

“The project can undergo an audit and have an audit report, but with a poor score. Yet, users overlook this and consider the mere fact that the project was audited as sufficient.”

According to Hacken co-founder and CEO Dyma Budorin, investors often ignore red flags like the absence of audits and other issues due to factors like the fear of missing out (FOMO). The industry has seen success stories with meme coins like Pepe (PEPE) and Shiba Inu (SHIB), where $100 out of curiosity led to significant profits, so people tend to hope for this history to repeat, the exec noted.

Related: Rug pull feared as Safereum devs reportedly unlock and dump native token

“This desire for substantial returns in a short timeframe often causes individuals to overlook red flags and impulsively dive into investments,” Budorin said, adding:

“Scammers are well aware of this and they are very good at mimicking successful projects. […] Scammers frequently refer to thriving projects, intensifying the FOMO on the next big opportunity.”

Hacken CEO also stressed that the process of investing in cryptocurrency is a “no-brainer for many users”, requiring “only a few clicks.” According to the exec, this fact also can lead to impulsive decision-making.

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