Chia coin price around $ 1000 amid global instability in the Crypro market
Things will soon be back to normal. Even after hitting a low of $ 688.43 in the past 24 hours, Chia Coin rebounded from an uptrend and was trading at $ 1019.2 at the time of writing.
The price of the newly launched Chia coin (XCH) has been trending downward over the past two days, dropping below $ 1,000 in the past 24 hours. On May 17, 2021, the coin was trading at around $ 1300 but started a decline which saw it hit a low of $ 688.43 today, May 20, 2021. However, it is not because of the ongoing crypto market downturn due to rumors of a crypto ban in China. .
Likely Reasons For Falling Chia Coins Price
Token prices are subject to the forces of supply and demand. To put the Chia Coin in perspective, the drop in prices can be attributed to a number of factors.
Risks of unofficial mining pools
On May 17, 2021, Chia Network founder Bram Cohen warned miners about the dangers they face when using unofficial mining pools, the main danger being scams. Cohen reiterated that unofficial mining has seen some miners donate their private keys to their pools, a move that compromises the security of their wallets.
He suggested that the only way to fix such an error would be to create another wallet and transfer everything. Additionally, Cohen noted that they plan to develop a pooling protocol, the Chia Planning Protocol. However, Chia will not develop a mining pool.
The Chia network generally uses high capacity hard drives. Hard drives are to blame for the downtrend, Tomshardware says. Tomshardware noted that the current huge demand for hard drives in the Chia network has resulted in a general shortage of the product in the market. As more and more Chia users need more hardware storage, the market prices for hard drives have risen sharply. In a case involving graphics cards aka GPUs, used to mine Ethereum, a similar spike was seen. The report indicated that in some cases retailers ran out of hard drives altogether, leading to price spikes. In addition, the available models turned out to be very expensive for a sustainable project. A classic example is the Seagate Barracuda Pro mode, where Amazon’s price went from $ 583 to $ 649 as demand increased.
The Chia platform was founded with the aim of positively influencing the global financial landscape. However, the current increase in demand for hard drives that does not match the market supply can clutter Chia’s system with tons of unprocessed data, which can disrupt the payment system.
According to CoinMarketCap’s price chart, it’s clear that things will get back to normal soon. Even after hitting a low of $ 688.43 in the past 24 hours, the coin has rebounded to an uptrend and was trading at $ 1019.2 at the time of writing.