Today, we will introduce the OXBTC services, particularly the CKB services, through a few questions and answers.
Q1: OXBTC has always kept an eye on lesser-known cryptocurrencies. We’ll give a brief introduction about the platform’s recent launch of the CKB Innovative Mining (real perpetual contract)
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**A1：**My pleasure. Different from the conventional BTC cloud hash rate, the CKB Innovative Contract is a niche-market hash rate service targeting a new cryptocurrency. Powered by Toddminer C1 Pro, a mining machine with exceptional hashing power and excellent cost performance, the CKB Innovative Contract is a real perpetual contract that allows the user to have permanent ownership of the machine and receive the revenue it generates during the service life. Furthermore, the user can also exit from the Contract by trading the hash rate in the secondary market or withdrawing the mining machine.
As you all know, token prices have been extremely volatile over recent months. Moreover, the mining revenue of many mainstream tokens has also fluctuated. In such a context, miners need new mining assets with high yields to ensure their profit margins. Recently, ASIC miners used for CKB mining have been sold out the moment they hit the shelf. After some calculations, we contacted the manufacturer and reserved the last batch of the machines to offer cloud hash rate services and to help miners seize the opportunity of CKB mining through CKB Innovative Contract.
Right now, users can make an appointment for the CKB Contract, which will be officially rolled out around April 15. The specific launch time of the Contract may be delayed or moved forward according to the specific time of machine deployment. Together with its partner Toddminer, OXBTC is making proactive arrangements for the early launch of the CKB Innovative Contract.
Q2: Here is a rather blunt question that many miners are interested in. Mr. Chen, can you detail the CKB hash rate for us? Such as the expected daily revenue, the payback period, the shutdown price, etc.
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**A2:**No problem. As manufacturers of CKB ASIC miners start shipping the machines, the network hash rate of CKB has continued to rise. Therefore, we cannot estimate the payback period based on the current static revenue. Below is a simplified formula we designed to help users estimate their revenues.
(contract hash rate/network hash rate)\*total daily release (supply) of CKB\*CKB price\*(1-the proportion of fees)-daily electricity fee=daily static net profit
Here is how this formula works. For example, let us assume that the user now buys 1 Terahash of CKB hashing power, and the network hash rate is 2,100 Terahash. At the moment, the actual daily supply of CKB is about 12 million (the real number may be even higher) at 0.027 yuan ($0.0042) each. Let us further assume that the service fees and electricity fees account for 6% of the mining revenue and that the electricity fee is 8.6 yuan ($1.33) a day.
According to the above formula, the user’s mining revenue, in this case, is 145 yuan ($22.5) a day. With the electricity fee (8.6 yuan or $1.3) subtracted, the daily net mining profit of the user is 136.4 yuan ($21.2). Based on the unit price of 8,100 yuan ($1,258.7)/Terahash, the static payback period is approximately 59-61 days.
Except for the contract hash rate and daily electricity fee, all of the above factors may fluctuate according to the actual circumstance, which means the payback period constantly varies. You can check these factors at major mining pools such as F2pool and SparkPool and use the above formula for the calculation of revenue.
Q3：Conventional cloud hash rates are mostly provided for BTC mining. Plus, in addition to its impressive stability and size, BTC hash rates are also more appealing to potential users. Why did OXBTC choose to focus on CKB cloud hash rates?
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**A3：**CKB Innovative Contract is a new approach. More specifically, it is “new” in two aspects:
Firstly, the Contract features a new cryptocurrency. Generally speaking, compared with BTC hash rates, the cloud hash rate of new tokens comes with higher potential revenue and greater risks. However, due to the impact of the upcoming halving, last month, the BTC price fell. Moreover, with the halving approaching, the mining revenue of the USDT-margined contract will also be halved. It is reasonable that many users are concerned with the market conditions of BTC after the halving.
In the case of CKB, halving will happen three years later. If there is any market impact at all, the halving will not reduce the mining revenue and may even lead to a rise in the CKB price. Furthermore, as a promising project, CKB offers the perk of early-stage tokens to be mined using ASIC miners. Considering these factors, we believe that CKB cloud hash rates will be a complement to conventional BTC hash rates.
Secondly, the Contract features a new mining model. As mentioned earlier, the CKB Contract is a real perpetual contract backed by Toddminer C1 Pro, the most efficient CKB miner out there. When the user purchases the Contract, he is buying the actual hashing power of a mining machine that is real and traceable. On OXBTC, buying hash rates is equivalent to buying mining machines. During the service period, the user can also choose to trade the hash rate or withdraw from the mining machine.
Q4：How will OXBTC handle shutdowns when the token price plummets?
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**A4：**OXBTC will turn off the mining machines temporarily to stop the loss for users and turn them back on when the token price rises. In the event of permanent shutdowns, OXBTC will inform the user of the Contract termination. In such cases, the user may decide how to dispose of the mining machine. At the moment, permanent shutdowns are highly unlikely because the Contract is backed by high-performing C1 Pros that have a lower shutdown price than other mining machines.
Q5: Right now, many platforms are providing cloud hash rates. Mr. Chen, what is OXBTC’s advantage compared to other platforms?
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**A5:**In the changing market, cloud hash rate platforms have come and go. Some of them are outstanding, and some are mediocre. As a long-standing platform, OXBTC has witnessed plenty of ups and downs among its peers. There have been platforms that went out of business in a few months, causing huge losses for users and investors.
Generally speaking, two types of platforms are most likely to go out of business. The first type includes fake cloud hash rate platforms that are not backed by any physical asset. Once the funds are exhausted, such shell platforms will shut down their business and flee. The second type covers platforms that did not fully assess the operational risks. Eventually, these platforms will be crushed by the flare-up of risks. Before choosing a platform, users should make careful assessments to avoid potential risks.
More specifically, OXBTC has the following advantages:
- OXBTC is backed by physical assets and a stable supply chain. Adopting a B2C supply chain, the platform works with its official partner Halley Mining for the O&M of its mining machines, which fully ensures stable machine operation and reliable power supply. Moreover, OXBTC will never shut down and flee because it is backed by real assets.
- Focusing on users, OXBTC has provided services that promise continued profits. The reason why OXBTC is widely trusted is that it has been providing users with mining revenues for six consecutive years. Furthermore, the platform has introduced many measures to avoid risks and protect the interest of users. For instance, during the bear market, OXBTC lowered the electricity price to ensure mining profits and adjusted the rules of perpetual contracts to offer a longer revenue period for users. The purpose of these measures is to help users survive the bear market and embrace the bull market.
- OXBTC offers innovative services that meet different user demands designed for all sorts of market conditions. Common cloud hash rate platforms focus on mainstream BTC assets. Backed by rich supply chain resources, OXBTC has been able to introduce hash rate services targeting a wide range of assets that meet different user demands. OXBTC is all set to roll out more services. Please stay tuned.
These long-term commitments are what set OXBTC apart from its peers. OXBTC has been offering steady returns for more than 2,000 days now. Established nearly six years ago, the platform has experienced many twists and turns. Thanks for your support. OXBTC will always be here to help users survive the bear market and embrace the bull market.
