Bitmain teams divorce the company, seek funds to put up a fight: Samson Mow

On 26th August, the Chief Strategist Officer of Blockstream, a blockchain company associated with cryptography and distributed systems, tweeted regarding the upcoming Bitmain IPO. He mentioned that one of the teams that quit Bitmain approached his friend as the group plans to compete with its former company. He wrote:

“Three Bitmain teams abandoned the company in recent weeks: one group from operations and manufacturing, & two groups from their chip design division. One of those groups is actively trying to raise capital to compete with Bitmain. They approached a friend of mine. #BitmainIPO”

Bitmain is the leading cryptocurrency mining giant based out of China that uses application-specific integrated circuit [ASIC] to mine Bitcoin. It is also feared to soon cause centralization in the field as it holds the majority in Bitcoin mining pools, reported approaching 51%. This can enable Bitmain to charge an attack on the Bitcoin network.

Recently, The CSO of Blockstream also shot comments on Bitmain regarding Bitcoin Cash [BCH] dominating its balance sheets. Earlier this year, the crypto-mining giant sold a considerable amount of Bitcoin [BTC] to buy Bitcoin Cash, which was considered to be a dangerous thing for the platform by many.

Bitmain also released a pre-IPO investor deck, wherein it has been alleged that the company lay the investment document with misleading language and information regarding DST Global as one of the investors. This could push other investors into investing in Bitmain, which could lead to legal issues for the mining firm.

Civ Ekonom, a cryptocurrency trader and investor, on Samson Mow’s tweet, commented:

“They would be fine if they would just have mined BTC and sold of BCH. Dont fight BTC because its economical devistating. Embrace and be rewarded. This is a message to all banks and participants. Dont try to fight it, because someone else will then prosper & render you obsolete…”

A Bitcoin enthusiast and startup investor, Denis Porteaux also exclaimed:

“Wow I totally misread this situation. I assumed that despite Bitmain holding BCH bags that it was still going to be wildly successful given the due diligence of Sequoia etc and pending IPO… but ends up that the VCs never invested and the company is losing pace with competitors.”

Jihan Wu, one of the strongest proponent of Bitcoin Cash and the Co-founder of Bitmain, also tweeted regarding the ongoing ‘ rumors’, as he addresses them to be. He stated that he does not have the convenience to clarify on any news associated with Bitmain, as there is no viable medium to contact its investor except WeChat.