An iconic shopping outlet for Chinese crypto miners has fallen under an eerie shroud of silence as the nation’s mining industry screeches to an abrupt halt.
The Beijing-led crackdown on mining has seen many of the nation’s key crypto mining provinces stamp out industrial mining, with further sanctions placed on crypto-related banking.
This has resulted in a sharp drop in hardware sales throughout the country. World Finance Chain (via Jinse) reported that prices of certain pieces of mining hardware had fallen by up to 50%. According to the media outlet, graphics cards are “severely unsellable” and that no one cares if prices drop.
It was difficult to find graphics cards just a few months back, but there seems to be an abundance of them now, especially for those who are looking to sell their hardware on a second-hand marketplace.
The author of this report was based in Shenzhen’s SEG Plaza, the fifth-tallest skyscraper in the city. It is located in the middle of Huaqiangbei’s electronics district.
The plaza’s fifth and sixth floors have been dedicated to crypto mining hardware retail for many years. Just a few months ago, the plaza’s mining retailers could only offer buyers empty boxes to look at, complaining that there simply were not enough GPUs available to meet demand – particularly as the global semiconductor crisis continues to bite.
According to the media outlet, the floors are now a ghost town despite the fact that there is plenty of stock on the shelves.
Many stall owners who originally hail from other parts have shut down their shops and “returned home to their homelands.”
Mining-grade servers, which are used for mining, have also fallen by half. The same applies to memory-related products.
A few months back, a 16T enterprise-class hard drive cost around USD 8,200. These devices were often out of stock and needed to be ordered in advance. Today, it costs just USD 3,100.
According to the outlet, the price drops are “indissoluble” from China’s “tightening mining policies” or “increased strengthening regulation in the mining industry.”
It concluded that China’s end to the mining industry was “foreordained.”