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Blockchain Crypto mining China Market Watch OKEx Insights

Nvidia graphic cards skyrocket as Inner Mongolia proposes crypto mining ban

2021.03.04 Matthew Lam

In its weekly China Market Watch, OKEx Insights conducts an overview of blockchain and cryptocurrency news from China and Hong Kong.

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Cryptocurrency mining stole the spotlight in China and Hong Kong this week after a ban was proposed by Inner Mongolia's Development and Reformation Commission. Meanwhile, the price of Nvidia's graphic cards skyrocketed in Shenzhen. Additionally, blockchain developers in China gained access to the TON network following its partnership with China's national blockchain network.

Here's everything you may have missed regarding these stories in this week's edition of China Market Watch from OKEx Insights. 

Nvidia GPU prices skyrocket alongside crypto mining demand

The price of Nvidia graphics processing units rapidly surged amid volatile cryptocurrency prices and a global chip shortage.

Vendors in Huaqiangbei — the largest electronics market in China — listed the selling price of Nvidia's GeForce RTX 3070 and 3080 as 8,200 CNY and 12,800 CNY, respectively. 

Key takeaways

  • The prices of Nvidia's GPUs listed in Huaqiangbei were significantly higher than the manufacturer's suggested retail pricing of 3,899 CNY for the GeForce RTX 3070 and 5,499 CNY for the 3080 series.
  • Nvidia reiterated that its GeForce RTX series is designed for gamers. The recent launch of the GeForce RTX 3060 effectively hamstrung Ethereum potential mining by 50%. In an effort to segment its market, Nvidia introduced its cryptocurrency mining processor to address the needs of Ethereum miners.

Inner Mongolia proposes crypto mining ban

Inner Mongolia's Development and Reformation Commission proposed a shutdown of local cryptocurrency mining farms by April. The regulator stated that the proposed ban is based on the energy-saving rules in Inner Mongolia. 

Additionally, new cryptocurrency mining projects will also be prohibited.

Key takeaways

  • Inner Mongolia was the only one of the thirty mainland areas that failed to meet the target under Beijing’s energy consumption and energy intensity review in 2019. Since then, the government has strived to cut energy consumption in coal, steel and cryptocurrency mining.
  • By ceasing the operation of crypto mining farms, Inner Mongolia would be aiming to achieve its energy consumption growth target, which is capped at roughly 5 million tons of coal.
  • Inner Mongolia was one of the largest crypto mining centers in China, due to low electricity costs.

BSN partners with TON

China's Blockchain-based Service Network announced a partnership with TON Labs to implement the Telegram Open Network protocol on its permissioned network. BSN developers are able to access TON technology through the partnership. 

From the perspective of TON Labs, the partnership encourages further innovation by BSN developers.

Key takeaways

  • The implementation of the TON protocol on BSN China is required to comply with Chinese regulations.
  • While Telegram abandoned GRAM in August 2020, community members, such as TON Labs, continued to build the TON network.

OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.