Back in November 2018, things were looking very grim for miners. Giga Watt is a Bitcoin mining company which declared bankruptcy because of the bear market. The company’s ICO model was launched back in September 2017 before the crypto all-time high and unfortunately went out of business just a little over a year later.
Giga Watt had a slightly different approach to the business model than other mining solutions. Users owned the mining hardware and paid for upkeep out of their earnings. The company also offered competitive power rates which unfortunately, later became unsustainable.
An announcement was made on the company’s Customer Support Telegram Channel, which informed users that they have the option to pay in order to have their mining hardware shipped to a location of their choosing.
Giga Watt came crashing down
During the ICO hype, Giga Watt’s WTT token was highly valued. Before ICOs suffered the irreversible reputation blow from the countless scams, a lot of investors were calculating large profits. WTT went up to $4.62 a little after it went on the market.
With the news of bankruptcy spreading like wild fire, many customers were rightfully concerned. This concern started growing even before the news became official as miners started experiencing many technical related issues. Some users reported customer support failure to communicate, while other experienced their miners randomly switching on and off.
November 24th saw the company release a statement which gave the right idea to all miners who still had doubts.
The statement was:
“We still have power in Moses Lake.”
Needless to say, most people knew by then that something was very wrong. Giga Watt however, was in more trouble than just the rough market conditions for markets. A document surfaced a little less than a week after which showed a list of companies, creditors and investors who are owed huge amounts of money. One such company is Neppel Electric, which is owed almost $500 000.
While most people got out as soon as the news got out, some miners continued to function even by early January 2019. Currently, all the utilities are cut off completely due to the company’s inability to provide payments.
Eventually more information will become available, but hopefully miners will get some good news soon.
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