In a surprising turn of events on the afternoon of May 13, the Bitcoin Cash (BCH) network experienced an unusual spike in hashrate—centered squarely on Huobi Pool. Around 3:00 PM, Huobi’s reported hashrate skyrocketed to 1320 petahashes per second (P), only to drop back down to just 13P within an hour. While this anomaly raised eyebrows across the mining community, the explanation is not as mysterious as it first appeared.
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The sudden fluctuation was not due to a technical glitch or malicious activity, but rather an internal test of a new product: a smart mining pool, commonly referred to as a "gun pool" or switching pool. According to sources close to the operation, Huobi Pool is preparing to officially launch its gun pool service, and select major clients have already begun private testing.
Understanding the Gun Pool Mechanism
A gun pool (or switching pool) dynamically allocates miners’ computational power across multiple cryptocurrencies that share the same mining algorithm—such as SHA-256 used by BTC, BCH, and BSV. Instead of locking hash power into one coin, the pool automatically switches to whichever coin offers the highest profitability at any given moment, based on real-time factors like price, difficulty, and transaction fees.
This model stands in contrast to traditional fixed mining pools, where miners commit to one blockchain regardless of shifting market conditions. With intelligent switching, returns can be optimized without requiring manual intervention from miners.
Huobi Pool’s approach follows what industry experts consider the safer and more stable method: real-time hedging on secondary markets with daily BTC settlements. This means that even if the pool mines BCH or BSV for a few hours, revenues are instantly converted into BTC value and paid out in Bitcoin the following day. As a result, miners avoid exposure to volatility while still benefiting from higher short-term yields.
Why Stability Matters in Volatile Markets
One of the biggest concerns for miners is income consistency. Cryptocurrency prices can swing dramatically within hours, and mining difficulty adjustments add another layer of uncertainty. A well-designed gun pool mitigates these risks through automated risk management.
As former BTCC Pool COO Ma Rui explained, there are generally two models:
- Real-time hedging: Profits from alternative coins are immediately offset in BTC via the spot market. This eliminates price risk and ensures stable payouts.
- Delayed conversion: Miners receive actual BCH or BSV tokens, which they must later sell manually—exposing them to market slippage and timing risks.
Huobi Pool has opted for the first model, prioritizing stability over speculative gains. According to internal communications, the platform assures participants that this system will deliver consistent income growth without downside risk.
The Evolution of Mining Pools: From Fixed to Flexible
Launched in March 2018, Huobi Pool quickly established itself as one of the earliest exchange-affiliated mining pools. Today, it ranks among the top 10 BTC mining pools globally by hashrate. Over the years, it has consistently pushed innovation—most notably slashing its BTC mining fee from 4% to 2.5% during its second-anniversary campaign in May 2025.
But beyond fee cuts, Huobi’s long-term vision includes expanding services like algorithm-based multi-coin mining, partner integrations, and tokenized mining rewards via its native HPT token. In 2025 alone, Huobi Pool reported mining revenues exceeding 2.278 billion yuan, underscoring its growing influence in the space.
The concept of gun pools isn’t new. Historically, they were used primarily for mining smaller altcoins with fluctuating profitability. However, with major forks like BCH and BSV entering the ecosystem, gun pools now play a strategic role in hashrate allocation during chain splits.
For example, during the 2018 BCH/BSV hash war, pools like BTC.TOP leveraged their ability to redirect massive computing power toward whichever chain offered better returns—sometimes influenced by third-party subsidies. Similarly, Bitmain’s Antpool launched its public gun pool beta in December 2019, supporting automatic switching between BTC, BCH, and BSV under PPS+ and FPPS reward systems—reporting a 3% increase in average miner income post-launch.
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Transparency vs. Anonymity: The Debate Around Switching Pools
While gun pools offer clear financial benefits, they also raise transparency concerns. Some operators use anonymous switching, where miners aren’t informed when their hashrate is redirected. This lack of visibility can lead to distrust—especially when large volumes of hash power suddenly appear on one chain during contentious forks.
Liang Zhenpeng (also known as Jiang Zhuo’er), CEO of Litecoin Mining Pool (LTC.TOP), previously criticized certain platforms for using opaque switching mechanisms to covertly support specific chains—such as directing unannounced surges of hashrate to BCH during critical consensus battles.
Huobi Pool’s decision to publicly disclose its testing phase suggests a move toward greater openness—an important step in building trust with both individual miners and institutional stakeholders.
What’s Next for Huobi Pool?
With its two-year anniversary marked by aggressive fee reductions and product innovation, Huobi Pool is positioning itself as a forward-thinking player in the competitive mining landscape. The upcoming launch of its gun pool service represents more than just a feature upgrade—it reflects a broader shift toward adaptive, data-driven mining operations.
Future developments may include:
- Expanded support for additional SHA-256-based coins
- Integration with futures markets for advanced hedging
- Enhanced analytics dashboards for enterprise miners
- Deeper integration with wallet and exchange ecosystems
As more miners seek ways to maximize yield in a saturated market, adaptive solutions like gun pools are likely to become standard—not exceptions.
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Frequently Asked Questions (FAQ)
Q: What caused Huobi Pool’s hashrate to spike to 1320P?
A: The spike was part of an internal test for Huobi’s upcoming gun pool service. It was not a permanent change but a controlled simulation involving select partners.
Q: Is a gun pool risky for miners?
A: Not necessarily. If the pool uses real-time hedging and settles in BTC daily—as Huobi does—the risk of loss due to price volatility is minimized.
Q: How does a switching pool decide which coin to mine?
A: It analyzes real-time data including network difficulty, coin price, block rewards, and transaction fees to determine which cryptocurrency offers the highest immediate return.
Q: Can I opt out of a gun pool if I prefer fixed mining?
A: Yes. Most platforms offer both fixed and dynamic mining options. Users can choose based on their risk tolerance and investment goals.
Q: Will more mining pools adopt gun pool technology?
A: Yes. Given the proven income uplift (e.g., Antpool’s 3% gain), increasing efficiency, and demand for stable BTC-denominated returns, adoption is expected to grow rapidly.
Q: Does Huobi Pool support coins other than BTC, BCH, and BSV?
A: Currently, focus remains on SHA-256 chains. Future expansion may include other algorithms and coins depending on market conditions and user demand.
By embracing smart switching technology and transparent operations, Huobi Pool is setting a new benchmark for modern mining infrastructure—one that balances innovation with reliability in an increasingly complex digital asset ecosystem.