Dogecoin and Litecoin Mining Announcement Crashed this Company’s Website

Avid proponents of Dogecoin (DOGE) and Litecoin (LTC) are likely responsible for crashing the website of a Canadian social platform after the company revealed its investment in DOGE and LTC mining. Dogecoin remains the quintessential meme coin amid social media backing by popular figures like Elon Musk and Mark Cuban.

Hello Pal Website Suffers Temporary Outage Following Dogecoin Mining News

According to an official communique released by Hello Pal on Thursday (Mar. 11, 2020), the company’s website was forced to go offline temporarily amid a surge of visitors. The traffic spike followed an announcement by the company of its 15% equity investment in a mining establishment that mines Dogecoin and Litecoin exclusively.

In its press statement, the Canadian social, e-learning, and travel platform revealed that the DOGE/LTC mining farm is the largest in the world dedicated to mining those two cryptocurrencies. The data center reportedly boasts a capacity of about 70 megawatts and is home to over 90,000 rigs. The facility also reportedly accounts for between 3 to 5 percent of the LTC/DOGE hash rate.

Following the announcement, Hello Pal said its website traffic went up by more than 1,000% overwhelming its capacity and causing a temporary outage. However, the company’s streaming platform and app service did not suffer similar outages despite recording massive online activity.

Apart from the equity investment, Hello Pal is also reportedly upscaling its mining inventory and has taken delivery of 51% of the over 12,500 mining rigs dedicated to Litecoin and Dogecoin.

Commenting on the incident, KL Wong, the Hello Pal CEO focused on the positives, stating:

“The sharp increase in activity on our website and the Hello Pal app validates the clear position we have taken on Dogecoin as well as on cryptocurrency in general.”

Hello Pal’s Dogecoin and Litecoin mining investment also constitutes an expansion of its crypto-related enterprise. The Canadian company already offers a proprietary cryptocurrency wallet service to its users.

The Power of the Meme

It is perhaps unsurprising to see a company announcing its involvement in Dogecoin triggering increased online visibility for the firm. Despite being a “meme coin,” Dogecoin continues to enjoy a cult following in the crypto space and even beyond with prominent figures outside the industry like Mark Cuban tweeting about the Shiba-Inu-inspired cryptocurrency.

While Elon Musk is a noted Dogecoin shill, the Tesla CEO has recently expressed concerns over the apparent ownership centralization of the cryptocurrency. Meanwhile, major crypto ATM maker CoinFlip has added support for DOGE across 1,800 of its machines.

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Kentucky Offers Tax Exemption to Attract Crypto Miners

Lawmakers in the U.S. state of Kentucky recently approved a bill that would exempt cryptocurrency miners from paying taxes. 

Crypto Mining Tax Exemption Bill Receives Majority Support

According to local news outlet the Lexington Herald-Leader on Tuesday (Mar. 2, 2021), the House Budget committee of the Kentucky General Assembly approved Bill 230, which sought to remove taxes on electricity purchased for commercial cryptocurrency mining activities.

The bill saw a vote of 19-to-2, which meant that lawmakers were in favor of the proposal. Meanwhile, the purpose of the tax exemption is to attract crypto miners to the state and encourage the growth of the industry.

As previously reported by BTCManager in January 2021, two Republican lawmakers Steven Rudy and Chris Freeland, sponsors of the bill, submitted the proposal to the General Assembly. The lawmakers at the time noted that the bill would make Kentucky a “national leader” in the cryptocurrency mining sector.

Meanwhile, the bill’s fiscal note puts the estimated cost to the General Fund at $1 million per year. However, lawmakers state that the exact cost cannot be stated, because it is unclear how many crypto mining facilities would move to Kentucky to leverage on the tax exemption offer.

Also, one of the bill’s sponsor’s Steven Rudy noted the complexity that comes with crypto mining, stating:

“Mining for cryptocurrency takes a lot of electricity. It is very heavily impactful on industrial-type things. It is not just a few people sitting in their mom’s basement or in their parents’ basement writing code. This is actually highly sophisticated, highly technical.”

Crypto Mining Activities Not Beneficial to Kentucky, Says Opposition Lawmakers

Some lawmakers from the Democratic Party, however, raised concerns regarding the bill, stating that bitcoin mining consumes a lot of electricity, which could be detrimental to the state.

One of such lawmakers, Raymond, asked the benefit of attracting and encouraging the crypto mining industry in the state, which Rudy answered by saying “We would love to have more industry. We welcome industry here.

Kentucky has been making moves to attract crypto miners to the state. Back in January, authorities approved tax incentives for mining company Blockware Mining to open a cryptocurrency mining operation in Paducah, with a total investment of over $28 million.

While the Kentucky General Assembly is looking to offer tax exemption to the crypto mining industry, the state’s Senate is also moving forward with a similar bill, known as Senate Bill 255.

Like Kentucky, Iran back in September 2019 also offered tax exemption to cryptocurrency miners. However, Iran’s tax break came with a condition that would require crypto miners to bring their foreign earnings back to the country.

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Ukraine Plans to Build Bitcoin Mining Farms Next to Nuclear Power Plants

Through the Ministry of Energy, the Ukrainian government is reportedly planning to build Bitcoin mining centers next to its nuclear power plants to tap excess power, Data Centre Dynamics reported on Feb 1.

Talks Held between the Government, Power Company, and Chipset Manufacturer

Details of the cryptocurrency mining project remain scanty.

However, officials from Ukraine’s Ministry of Energy have already held talks with representatives from Energoatom–the country’s state-owned nuclear power company, Hotmine—Ukraine-based chipset manufacturer, and Yevhen Vladimirov–the deputy energy minister for digital development.

However, to move forward with this proposal, they need to sign a Memorandum of Understanding (MoU) for guidance.

Sources reveal that the government is considering Bitcoin data mining centers, each able to draw between 250 and 500 MW of power. Energoatom says the total energy consumption across these Bitcoin mining facilities could reach 2 GW in their projection.

Subsequently, the absorption of extra load would help reduce the cost of transmission, reduce Energoatom profits, and increase revenue to the government, according to Vladimirov.

“The idea of ​​creating a data center based on a nuclear power plant, of course, deserves attention because the Ukrainian UES [unified energy system] has unused base capacity. The constant load on nuclear power units could bring extra profits to the state-owned Energoatom and enable businesses to operate, which will also pay taxes to the domestic budget.”

Ukraine is Nuclear Dependant

Public sources show that Ukraine is heavily reliant on nuclear which supplies half of their energy needs. It operates four nuclear plants with 15 reactors in Volhynia and South Ukraine, sourcing fuel and services from Russia and Westinghouse. In 2016, data showed that Ukraine had an installed capacity of 13 GW, ranking seventh in the world in 2016.

In Q2 2020, Olga Buslavets–the Minister of Energy, authorized the study of “possible implementation of cryptocurrency mining projects to provide additional sales markets for electricity produced by the nuclear power plant,” reports Data Center Dynamics. The result saw Energoatom signing a MoU with H2 LLC to build a $700 million Crypto mining center next to Europe’s largest power plant, Zaporizhzhia Nuclear Power Plant.

As BTCManager reported, Ukraine’s National Agency for Prevention of Corruption (NAPC) requires Bitcoin holders to declare their holdings for tax reasons.

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