Crypto Mining

Nvidia : Lowered Mining demand leads to Class Action Lawsuit

One of the major chipset manufacturing company – Nvidia, faces class action lawsuit due to huge losses reported by the company. Essentially the plummeting crypto price has reduced the demand for GPU’s in turn affecting the company’s profit margin.

The complaint filed by the Schall law firm states that – Nvidia made false statements and mislead the market. Per the announcement – the company promoted its ability to monitor the cryptocurrency market and make rapid changes to its business as necessary.

Furthermore, the complaint highlights the statements made by GPU manufacturer,

Any drop off in demand for its GPUs amongst cryptocurrency miners would not negatively impact the Company’s business because of strong demand for GPUs from the gaming market.

Earlier in the month of August, we saw that due to crypto-crash, the company had withdrawn its business in the mining industry. Notably, the tech giant witnessed massive losses and to sell-off major amount of shares. Consequently, the stock price fell by 54 percent.

Also, an analysis by renowned tech firm – Susquehanna confirmed that “mining Ethereum (ETH) using graphics processing units was no longer profitable. “

In fact, the report indicates profit margin per month for ETH miners was hit as low as $0.

It is evident that due to crypto-crash most of the mining industry is going in losses. Recently, a Japanese firm GMO Internet announced that they would be leaving the mining sector, citing extraordinary losses over the year.

What do you think? Will the situation of crypto-mining industry improve in the coming year? Let us know your thoughts in the comment section below.

About author

Lead writer at Wolfcone.com and avid reader. My interests lie in everything and anything related to technology. I firmly believe cryptocurrency has the power to revolutionize world economy and blockchain will be next big thing in human history.
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