As the cryptocurrency market was really starting to thrive, prices and overall marketcap increasing rapidly and the profits in cloud mining began shooting through the roof. The ROI of these contracts, along with the nearly risk free margin lending rate at the time (30% APR) made for some great potential profits. So the owner of Btcpop who was going to buy the contracts anyway made an IPO (called BTCM short for Bitcoin.com Mining) so smaller players could participate and benefit from the large purchase discount as well has Btcpop’s Poloniex lending bot.
This IPO was extremely successful during the good times. Large dividends were paid every month and the 50% re-purchase of mining contracts was even growing the dividend as things went up. However, after the market peaked in early 2018, large miners kept piling on the hash power with electricity pre-purchased years in advance with $20k BTC. This quickly drove all profit out of mining, and because BTCM was about mining, all the profit left from the IPO as well.
While BTCM IPO contracts are now essentially useless, Btcpop’s owner has expressed intentions of thinking of a creative way to potentially get BTCM profitable again if mining doesn’t recover in time.
On 4/25/19 the first non mining dividend of .87 BCH was paid from BAT earnings of Btcpop on the Brave browser. Download and use brave today to support your favorite websites.