How could Bitmain destabilize and influence the entire cryptocurrency market?
Bitmain is one of the largest cryptocurrency mining companies in the entire cryptocurrency market. However, in the near future, it could replace its main operational officers Jihan Wu and Ketuan Zhan. The information was recently released from the South China Mining Post.
This decision comes after several months of speculation in which Bitmain announced it had lost billions of dollars during the first quarter of 2018. At the same time, the company had to lay off more than half of its staff, including a team that was working with an update to Bitcoin Cash (BCH). In addition, his office in Tel Aviv was also closed by the company.
At the same time, in September, the company asked to become public in Hong Kong. However, regulators rejected the initial public offering because there is no regulatory framework related to cryptographic companies.
The company producing hardware for the mining industry had a good year in 2017 when Bitcoin skyrocketed. But it seems that its strategy of concentrating on data mining hardware has not produced good results. According to BitInfoCharts, the company sold about 8,000 BTCs as the market began to plunge into the early 2018. In addition, the company maintained its balance during the year.
In addition, a Bitcoin SV portfolio revealed that there was a BTC portfolio whose balance moved to zero when Bitcoin Cash forked strong. The cryptography market has suffered a major price drop this day. Bitmain has decided to support the Bitcoin ABC proposal for Bitcoin Cash, also supported by Roger Ver, CEO of Bitcoin.com.
At the moment, Bitmain contains 8.490 BTC. However, the number may be greater, depending on the number of BTCs that it has in other portfolios that are not public.
If a company that owned 70% of the mining market loses its funds in this way without showing real growth, it does not give confidence to investors who want to place their funds on it. At the same time, if it starts selling its BTC, the market would take it in a very negative way.