On November 16, 2022, prime cryptocurrency broker Genesis announced that it was halting withdrawals. As a result, PROHASHING took $244,501 in additional losses, on top of the losses incurred from the failures of Celsius, BlockFi, and several exchanges. The total losses to PROHASHING in November due to exchange failures are currently estimated at $1,059,501.
An image of PROHASHING's financial dashboard is listed below:
PROHASHING's reserve now stands at approximately $90,000, with about $50,000 in wages already accrued. Therefore, we expect to have $40,000 remaining in the pool's reserve at the end of November. To lock in these numbers and protect against future crashes, we are currently liquidating PROHASHING's entire coin reserve into dollars. Assuming the worst case of continued price declines, no effect from the litecoin halving, and no gains in additional customers, we therefore are able to continue normal operations at least in December and January while waiting for news on the companies impacted by the FTX catastrophe.
As we discussed in previous posts, PROHASHING's customer funds are unaffected because they are stored in cold wallets offline and offsite. A Ledger Live screenshot of some of PROHASHING's unclaimed customer balances is shown here:
Because PROHASHING mandates daily payouts and enforces a maximum payout threshold, the debts represented by these coins are almost entirely owed to customers who have failed to enter payout addresses.
PROHASHING diversified its holdings across many exchanges and lenders so that operations would be unaffected by a single lender's failure. However, the simultaneous failures of Genesis, BlockFi, and Celsius have forced the pool into emergency cost-cutting measures. Therefore, we are sorry to announce that this week we will be saying goodbye to Adithya, one of our backend developers.
Adithya has been a key part of PROHASHING since he graduated from college this Spring. He was integral in adding Conflux support to the pool, and is one of the major contributors to the monitoring system dashboards like the one you saw in the first image. Adithya has a great understanding of the mining servers, and his loss will set PROHASHING back significantly in the implementation of new mining features. He is an excellent employee who will be sorely missed.
Adithya is a hard worker and is strongly recommended. If you are interested in hiring Adithya, please submit a support ticket to help@prohashing.com and we will present your opportunity to him.
We'll continue to provide updates about PROHASHING's financial situation in December after the effects on the bankrupt lenders become clearer. Thank you to Adithya for his hard work and dedication to his tasks, and we are sorry to see him go.
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