Pioneering blockchain infrastructure company TAAL Distributed Information Technologies Inc. recently announced it closed the asset purchase agreement with Tansley Equipment Limited (“Tansley”) and two other firms. Earlier this week, the company released an updated statement concerning its recent purchase of cloud computing assets from Tansley.
Tansley is currently involved in a dispute with an undisclosed hosting provider where said purchased assets were previously operational. The hosting provider claims Tansley and another entity owe an unpaid amount with the termination of hosting contracts between the parties. As a result, they have refused to release specific equipment in their possession, including the remaining cloud computing assets for shipment.
Tansley is affiliated with Bitcoin entrepreneur Calvin Ayre, who is also the founder and owner of CoinGeek. In line with the conditions stipulated in the agreement, the conflict is being sent to arbitration in New York to determine a resolution. In the meantime, some equipment has already been released to TAAL for shipment.
TAAL is not directly involved in the dispute and views it as an insignificant issue. TAAL’s team does not expect the dispute or delay in delivery to affect its business plans since the assets were not supposed to be upgraded and deployed until later in the year.
With the halving fastly approaching, this is just the beginning of the disorder set to take place as the transaction processing industry (formerly mining) contracts after ill-advised expansion within the overvalued BTC market. We are already witnessing some processors deactivate nodes because of the plunge in the digital currency financial market.
For many, the BTC digital currency continues to trade at a price below its block production cost. Many processors were dazzled by promises of fortune and sold on a story around a token with no utility. Factoring in the global pandemic and nonsense of crypto tokens rapidly increasing in economic value based solely on FOMO, we are likely to see even more shakeups soon as the market continues to frustrate the BTC supporters.
Once reality sets in that the BTC network’s best trading days are long behind it, processors will no longer be incentivized to continue securing and supporting the BTC blockchain. Some hardware owners will switch over to processing transactions on the Bitcoin SV blockchain. CoinGeek fully expects more new cases of mining companies going into arbitration or to the courts as they look to end vendor contracts and exit the market or merge with a larger competitor.
The recent announcement that Digital Farms shut down its transaction processing unit may signal that the floodgates have already cracked open. Even for those that don’t see Digital Farms as the harbinger for turbulent times ahead for transaction processors, the drop in network hash rate is undoubtedly a cautionary sign that processors are leaving the BTC network. The knock-on effect of their departure will cause disputes to arise as vendors seek one last payout.
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