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Topic: Nvidia Battles Shareholders in Lawsuit Over Crypto Miner Claims (Read 244 times)

hero member
Activity: 2814
Merit: 911
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Chip making giant Nvidia has been making its case for why a court should throw out a lawsuit alleging it misled investors over cryptocurrency mining demand for its graphics cards.
I am not sure about the validity of the case but it is no doubt that the chip manufacturing companies earned a lot of money from mining enthusiast so that the gaming population was not able to get hold of the graphic card and the demand was so high at one point in time that you need to book the product months before it reaches your hand and historically there was never a instance like that and it was a one time anomaly and that rush has gone down substantially and in a stock point of view their profit margin will go down but these lawsuits are meant to squeeze money by the law firms Cheesy.
hero member
Activity: 1806
Merit: 672
The shareholders' legal representative argued in response that Nvidia had indicated that crypto-based revenue was low, but was actually so substantial that the company missed its expected earnings when cryptocurrency prices dropped and miner demand fell.

This is some kind of a bullshit a company pulls up with when they are admitting something yet they deny it at the same time. If they didn't meet their targets then why are they increasing the base prices of their gpu? Increasing the prices of their GPU simply means that the demand skyrocketed during that time because of the crypto bull run we have yet their earnings are still low? If I were part of their board I would just release the actual sales coming from mining rather than make this a big case for them which will actually cost them more millions of money.
legendary
Activity: 1904
Merit: 1074
The mining scene has changed a lot since we saw the big spike in the price in 2017, when there was a huge demand for GPU's for mining. During that

time you could hardly find any GPU for gaming, because everyone was buying them to mine Crypto currencies. We also had a lot of ICO's with their

own tokens and GPU's was ideal to mine these Alt coins. The ICO scene nearly collapsed since then and the Bitcoin and Alt coin prices has dropped

with over 80%, so it is not that profitable to mine these Alt coins anymore.  Roll Eyes
jr. member
Activity: 88
Merit: 1
Chip making giant Nvidia has been making its case for why a court should throw out a lawsuit alleging it misled investors over cryptocurrency mining demand for its graphics cards.

I would recommend just getting a dedicated ASIC miner from Bitmain if you want to try out mining at home.

I don’t think it pays off. I think this test will be very expensive for its tester, unfortunately 2020 is already coming and in my opinion home mining is not effective
legendary
Activity: 3542
Merit: 1352
Cashback 15%
If Nvidia only disclosed what really is happening to its investors, maybe we wouldn't be having this conversation as to why they are in a lawsuit. But then again, I wouldn't believe that the investors would that be naive on the events of 2017 when mining was the booming industry and not really gaming. They are blindly accepted revenues on the boom and pretended not to know about anything but really, I'm pretty sure most of them do and are only saving this tactic for a lawsuit and damages claim later on--which is happening now.
hero member
Activity: 2870
Merit: 594
I think that Nvidia is really to blame for this. After all, investors will not get their money back.
Nah, investors were pretty aware that there was a gpu mining boom and it's pretty silly to expect that to continue forever without issue.

Right, investors are not complaining when we have a boom in 2017. However, they should have known that this kind of surge can't be sustained in the long run. Of all the people, they should be the first one to understand the market situations.

This is going to be a long battle, and with the expected bull run in 2020, they should step aside their difference and look for ways to make money again. just saying.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
As far as I know, not disclosing your revenue to your largest shareholders on a company is punishable, as it is the company's responsibility to inform their investors legitimate data from their business.

They have disclosed their revenue, it's public data that the investors are accusing Nvidia is not telling them how many of those sold graphics cards were used for mining.
But the numbers that circulate around are heavily exaggerated.
Even if we assume the entire hashrate of the eth network was done at that time with brand new GPUs bought that year, no ASIC miner and we would still fall a bit short of those 2.4 billion in sales that people claim have been generated by wanna be miners.

They should look in other places, and one of them is the need for a new gpu , I'm still happy with my 1050ti and probably I won't change it unless it catches fire and a lot of people who have bought cards just so they can enjoy casual gaming or a 4k video will do the same.

One of the reason why is because there is allot who thinks they could earn allot from mining, they tend to setup their mining rig and farms not really considering the power consumption cost it can do, and I think they don't really know bitcoin is getting into halving. In that case, after the decline in the market, they tend to sell their graphics cards and get back their losses. I am one of the person who benefits from the graphics card because I bought one with low price that I highly think is used from mining.

Wow, never thought there are people still mining with GPU cards out there!
But you nailed one thing, a lot of people don't have a clue about mining!! Even here!

newbie
Activity: 29
Merit: 0
I think that Nvidia is really to blame for this. After all, investors will not get their money back.
sr. member
Activity: 1274
Merit: 278
because the level of difficulty is getting higher every time in mining and people are racing to improve their graphics cards GPU to a higher version, obviously for the previous version the price will go down because it will not be profitable if it is used only to sell it cheaply to others especially to gamers

One of the reason why is because there is allot who thinks they could earn allot from mining, they tend to setup their mining rig and farms not really considering the power consumption cost it can do, and I think they don't really know bitcoin is getting into halving. In that case, after the decline in the market, they tend to sell their graphics cards and get back their losses. I am one of the person who benefits from the graphics card because I bought one with low price that I highly think is used from mining.
sr. member
Activity: 625
Merit: 258
Com'on it can be for multiple things, from science exploration, math exploration, design developments and anything else.

What i see is someone trying to get some profits from a typical lawsuit over crypto miners as it was once before.
Just another day where someone thinks he can take advantage of the current miner's market situation for his own goal and purposes.

If you are scared off of that just go with Bitmain anyway Roll Eyes
hero member
Activity: 3066
Merit: 536
Leading Crypto Sports Betting & Casino Platform
As far as I know, not disclosing your revenue to your largest shareholders on a company is punishable, as it is the company's responsibility to inform their investors legitimate data from their business. And if proven true, this could impose some problems to Nvidia. As far as what I've understand, the takaways here are as follows:

1. Nvidia told their investors that the 'Gaming' industry revenues are high, when in fact, large percentage of those profits are from cryptocurrency mining.

2. Now that it's mining industry had fallen, the investors are 'shocked' because they initially thought the profit was from gaming and the company is doing great.
I do agree with the company not being so transparent on disclosing their revenue and mining shouldn't even be in the same category as Gaming industry and maybe this was intentionally to misled people into attracting bunch of investors and now it's showing its true color. the existence of ASIC miner also beat these gpu to pulp due to its high efficiency in term of mining contributing to a significant drop in their revenues  and if there someone invested money into GPU they'd mine altcoins instead.
sr. member
Activity: 1834
Merit: 261
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Most of the people who are just cryptocurrency user started to invest on cryptocurrency mining based on the hype. The price increase that took place over the entire cryptocurrency market is used as an opportunity to make an increase in the price of mining cards. I'm one among the user who invested by that time. I made an investment worth of $10000 buying mining cards and finally now when I want to sell what I get is not more than $1000.
because the level of difficulty is getting higher every time in mining and people are racing to improve their graphics cards GPU to a higher version, obviously for the previous version the price will go down because it will not be profitable if it is used only to sell it cheaply to others especially to gamers
legendary
Activity: 3080
Merit: 1500
Chip making giant Nvidia has been making its case for why a court should throw out a lawsuit alleging it misled investors over cryptocurrency mining demand for its graphics cards.

https://www.coindesk.com/nvidia-battles-shareholders-in-lawsuit-over-crypto-miner-claims

It's just a greedy bunch of deep-pocket investors invested millions in Nvidia shares to make some quick buck assuming their gaming division is doing just fine! When their assumptions are not met with the reality, they filed a lawsuit to make up the losses! Like one of my fellow community member already pointed out, GPUs are also needed for data science applications - which is not big but still has a market and its growing rapidly!

Thank God, bitcoin doesn't have a centralized authority controlling the network. Otherwise millions of lawsuits would have been filed after the great 2018 crash!
sr. member
Activity: 1554
Merit: 334
As far as I know, not disclosing your revenue to your largest shareholders on a company is punishable, as it is the company's responsibility to inform their investors legitimate data from their business. And if proven true, this could impose some problems to Nvidia. As far as what I've understand, the takaways here are as follows:

1. Nvidia told their investors that the 'Gaming' industry revenues are high, when in fact, large percentage of those profits are from cryptocurrency mining.

2. Now that it's mining industry had fallen, the investors are 'shocked' because they initially thought the profit was from gaming and the company is doing great.
legendary
Activity: 3234
Merit: 1214
Vave.com - Crypto Casino
Most of the people who are just cryptocurrency user started to invest on cryptocurrency mining based on the hype. The price increase that took place over the entire cryptocurrency market is used as an opportunity to make an increase in the price of mining cards. I'm one among the user who invested by that time. I made an investment worth of $10000 buying mining cards and finally now when I want to sell what I get is not more than $1000.
sr. member
Activity: 652
Merit: 257
Chip making giant Nvidia has been making its case for why a court should throw out a lawsuit alleging it misled investors over cryptocurrency mining demand for its graphics cards.

https://www.coindesk.com/nvidia-battles-shareholders-in-lawsuit-over-crypto-miner-claims

GPU chips are needed not only for gaming, but also deep learning and big data science applications.

GPUs for mining are also another realistic application and although the mining rewards might be getting smaller for Bitcoin, there are a whole lot of other cryptocurrencies which could use GPU to mine. It's up to you if you want to establish yourself as a player in the mining game, but it is getting more expensive to make a profit with Bitcoin.

I would recommend just getting a dedicated ASIC miner from Bitmain if you want to try out mining at home.
hero member
Activity: 3038
Merit: 634
Base on what the majority saw last bull run of 2017, the GPU's demand was so high and obviously it's not due to the gaming scene but it's mostly bought due to the hype for miners. And that made the price of GPU's too expensive and we saw the latter.

I'm curious with the statement that was picked by their investors because how it can even be proved if the Nvidia is denying it. Does the staff asks the buyers during that time if they were buying their cards for mining or for gaming? if so, they should get a record of it but I doubt it that there is.
jr. member
Activity: 121
Merit: 1
Chip making giant Nvidia has been making its case for why a court should throw out a lawsuit alleging it misled investors over cryptocurrency mining demand for its graphics cards.

https://www.coindesk.com/nvidia-battles-shareholders-in-lawsuit-over-crypto-miner-claims
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