Bitmain

A developer and provider of mining hardware, such as Antminer.

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Is Bitmain’s Financial Troubles Connection At The Root Of Bitcoin Cash’s (BCH) Loss In Value?

Are Bitmain’s Financial Troubles The Root Of Bitcoin Cash’s (BCH) Loss in Value? Much of the community for cryptocurrency finally was able to take a moment to relax after the hash war involving two blockchains on Bitcoin Cash finally ended on November 24rd, after 11 days. Two specific groups in the BCH community couldn’t seem to settle on which blockchain would be dominant. After forking the blockchain, Bitcoin Cash was ultimately divided into Bitcoin SV and the formerly-named Bitcoin ABC. The ABC blockchain was warded the original Bitcoin Cash ticker (BCH). Jihan Wu, who supported the ABC blockchain, is also the CEO of Bitmain. Bitmain’s primary focus is on creating Bitcoin mining chips, though it is also in charge of BTC.com and AntPool, which are two of the biggest mining pools in the world. However, Bitmain was showing signs of trouble before the Hash Wars even began. The first indication that there was some struggling for Bitmain was during a board reshuffle, causing Wu to be removed from his seat as the board’s executive director. Instead, the new director became Zhan Ketuan, though there has yet to be a reason for the reshuffle in the first place. Still, the fact that 90,000 miners were urgently sent to Xinjiang for the mining of Bitcoin Cash ABC at the time may not have been a coincidental action. When the Hash Wars finally ended, rumors of a $740 million loss during Bitmain’s third quarter started flying. Without including the cost of the Hash Wars as well, these unconfirmed losses suggested that there was an upcoming IPO that the executives of Bitmain would use as an exit strategy. Bitmex’s research team believes that the amount of the loss from the BCH Hash Wars was approximately $10 million. With the conditions of the crypto market at the time, Bitmain decided to also close down their development center for blockchain technology in Israel. UnitedCorp didn’t take the ending of the Hash Wars sitting down. They quickly sued Bitmain, along with Bitcoin.com, Kraken Bitcoin Exchange, and Roger Ver, accusing them of taking over the Bitcoin Cash Network after the hard fork. There were also subsequent rumors that Bitmain was trying to remedy all of these losses with a sale of their BCH stash, seeking for a way to fulfill their $600 million alleged debt. The twitter user spurring these rumors posted an image of the potential sale, adding, “No-Action speaks louder than words. Its clear Jihan has abandoned the BCH project. And not just that, info we have Bitmain is secretly liquidating its BCH stash to pay off supplier debts – some $600 mln.” This was also the user that told the public about the third quarter losses. In a subsequent tweet, the same user said, “PREDICTION: Bitmain will finish the year with NEGATIVE $1,2-$1,5 BLN NET INCOME and cement its place as most money losing company in the industry.” If all of these rumors and allegations are confirmed by Bitmain, it could be the reason that the coin has managed to fall by over 80% this month, bringing it down from the #4 spot to the #7 spot.
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Is Bitcoin Cash (BCH) Losing Value Due to Bitmain’s Alleged Financial Woes?

The crypto community breathed a sigh of relief after the Bitcoin Cash (BCH) hash wars reportedly ended on the 23rd of November. The Hash Wars that had officially started on the 14th of the same month, were due to two factions of the BCH community not agreeing on which upgrade to implement. This then led to a bitter battle between one camp led by Craig Wright (Bitcoin SV) and another by Roger Ver and Jihan Wu. The two camps eventually settled to fork the BCH blockchain. Mr. Wu is the current CEO of Bitmain which is a company that specializes in designing ASIC chips for Bitcoin mining. The company also operates two of the largest Bitcoin mining pools: BTC.com and Antpool. Signs of Trouble at Bitmain The initial signs of trouble at Bitmain started right before the Hash Wars when it was reported that Jihan Wu had lost his seat as the company’s board executive director after a board reshuffle. Jihun was reportedly replaced by Zhan Ketuan. The reason for the reshuffle was not explained but on the same day, 90,000 miners were hurriedly deployed in China’s far-western region of Xinjiang to mine Bitcoin Cash ABC – the current BCH. After the Hash Wars were over, it was rumored that the Q3 financials of Bitmain indicated that the company had made losses amounting to $740 Million. This amount excluded the cost of financing the hash wars. The unconfirmed losses by the company has led many to speculate that the pending IPO is an exit strategy by execs at Bitmain. According to research by a team at Bitmex, the joint loss by both camps due to the BCH hash wars could well have exceeded $10 Million. Bitmain has also closed down its Israeli Blockchain development center, citing crypto market conditions. Pending Law Suit Against Bitmain Soon after the hash wars, UnitedCorp launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others, claiming they had hijacked the Bitcoin Cash Network after the November 15th hard-fork. Rumors that Bitmain is Liquidating its BCH Additional rumors circulating on Crypto Twitter indicate that Bitmain might be liquidating its BCH stash to pay off supplier debts totaling $600 Million. One such tweet can be found below. No-Action speaks louder than words. Its clear Jihan has abandoned the BCH project And not just that, info we have Bitmain is secretly liquidating its BCH stash to pay off supplier debts – some $600 mln pic.twitter.com/N6NHXgDvmJ — BTCKING555 (@btcking555) December 14, 2018 The same twitter user was the one who informed the crypto community about the potential $740 Million in Q3 losses made by Bitmain. The user also had this to say in a recent tweet. PREDICTION: Bitmain will finish the year with NEGATIVE $1,2-$1,5 BLN NET INCOME and cement its place as most money losing company in the industry #BitmainIPO @HKEXGroup If the reports of Bitmain’s financial woes turn out to be true, it explains why Bitcoin Cash has continually fallen from the number 4 spot on coinmarketcap.com, to its current number 7 ranking. Before the hash wars, BCH was trading at around $500. The digital asset is now valued at $86 indicating a 83% drop in value in a period of one month.  What are your thoughts on the drop in value of BCH? Could it be linked to the ‘troubles’ Bitmain is facing? Please let us know in the comment section below.  [Image courtesy of stuff.co.nz] Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you. The post Is Bitcoin Cash (BCH) Losing Value Due to Bitmain’s Alleged Financial Woes? appeared first on Ethereum World News.
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Bear Market Forces Bitmain to Close Blockchain Development Center in Israel

The downturn of the crypto market has forced Beijing-based Bitcoin mining giant Bitmain to close its blockchain development center in Israel and lay off all of its employees, Israeli business news outlet Globes reported on December 10, 2018. Shutting Down All Operations in Israel While many predicted that the bear market wouldn’t last longer than a few weeks, the downfall of the crypto market shows no signs of stopping, despite the end of the year getting closer. The extremely unfavorable conditions have already forced many blockchains and crypto businesses to close down or lay off staff in order to remain afloat. And while most casualties have been smaller startups, the latest one is none other than industry giant Bitmain. The Beijing-based mining rig manufacturer has been hit hard by the crypto market and is struggling to remain profitable. According to Globes, an Israeli business news outlet, Bitmaintech Israel, Bitmain’s development center set up in Ra’anana back in 2016, will close this week and its 23 employees will be laid off. The head of the company, Gadi Glikberg, who serves as a VP at Bitmain, will also be leaving the business. “The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation,” Glikberg reportedly told Bitmaintech’s Israeli employees. During its two-year run, Bitmain’s Israeli center worked on the Connect BTC mining pool and building AI technology used in the company’s Sophon project. Hard Year for Bitmain Neither Bitmaintech nor Bitmain have commented on the news yet, leaving investors worried about the company’s stability. The news about the shutdown of the Israeli center comes amidst two lawsuits the company is currently facing. A $5 million class-action lawsuit was filed in the North District Court of California against Bitmain’s U.S. and Chinese-based entities, accusing them of unauthorized mining practices. Another lawsuit was filed against Bitmain, Bitcoin.com, Roger Ver and the Kraken Bitcoin Exchange, with the case alleging that the defendants manipulated the Bitcoin Cash network for their benefit. In addition to the legal troubles the company has faced in 2018, Bitmain is also struggling with financial problems. Back in September 2018, a report from BitMex Research showed that the company had a net loss of $395 million in the second quarter of 2018. The post Bear Market Forces Bitmain to Close Blockchain Development Center in Israel appeared first on CryptoSlate.
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DIGEST

Facebook is searching for talents, Bitmain closes its Israeli branch, Jeremy Henrickson leaves Coinbase, Gemini launches a mobile wallet for crypto traders, Opera adds a crypto wallet to its Android browser, Basis shuts down, the number of crypto users increases, Ethereum software client has published a new code, Ethereum-based Geth software releases update, UAE Exchange partners with Ripple, Revolut obtains a banking license

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OPINION

BCH, we need to talk: what can be the main problem

'Bitcoin Cash may be hard forked in November. Two groups of developers can't agree on its features, releasing their own clients, Bitcoin ABC and Bitcoin SV, incompatible with previous software.' Two coins, two original Satoshi visions. Which one is 'truest'? Will both of them qualify as the vision?

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Crypto Bear Market is So Bad That an ICO is Day Trading its Holdings

Every day, the crypto market is on the verge of entering darker territory, and as prices continue to plunge, many cryptocurrencies have become the victims of sudden sell-offs. An initial coin offering (ICO) called Substratum has even taken to day trading its present ether holdings to make up for potential losses. In a YouTube video, a figure named Justin from the Substratum network announces that the company is opening the doors to a token swap set to begin on Monday, December 17. The smart contracts for the company will begin then and batch transactions will start happening over the Ethereum network. Old Crypto Becomes New Crypto Prior to this date, executives will be moving any remaining Ethereum tokens in their crowdsale wallet over to a new wallet. If a person’s tokens are on Binance, the switch will be occurring natively through the exchange. Thus, customers will not need to worry. If a customer’s tokens are locked up in a wallet for an airdrop, they too will not need to take any steps. The move from the present wallet to the new wallet will occur on its own time. All older tokens will become frozen and unusable while the new tokens will be transferred into customers’ wallets. The company is also moving from two decimal places to 18 decimal places, which representatives claim will make transactions faster and more efficient. The smart contract has been fully audited by Quantstamp; furthermore, 120 million old tokens have been burned thus far. They will not be coming over through the transfer but will rather disappear into what Justin calls “the ether.” These tokens are set to disappear completely. The transfer will not be done within a set timeframe. The transfer is indefinite and will last until all customers’ wallets have received their new tokens. Predicting What the Future Holds Substratum now has a full-time trader on staff, who has suggested that Ethereum is going to be continually tested over the coming months. The bear market is not letting up and he has stated that Ethereum could fall to as low as $60. Executives are not necessarily looking to cash out. Instead, they will be trading only a portion of the Ethereum they possess, which they claim will give them the chance to “trade up” and potentially earn a little revenue before the crypto market falls any further. Once the market becomes bullish again, Justin claims in the video that Substratum will be in a better place and will be able to create newer (and better) products. Do you foresee the market getting even worse before it gets better? Post your comments below. Image courtesy of Shuttershock The post Crypto Bear Market is So Bad That an ICO is Day Trading its Holdings appeared first on Live Bitcoin News.
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States Take Cryptocurrency Regulation Into Their Own Hands As US Federal Government Focuses On Blockchain

States Take Regulation Of Cryptocurrency In Their Own Hands, As US Federal Government Focuses On Blockchain Technology The regulation of cryptocurrency has been an ongoing problem for the United States (US). They have managed to outline particular processes involved with blockchain technology and have many trials that examine the way that it works in their industries. However, the fact that even government authorities have different classifications for the same token groups makes it hard to know how to handle them. As a result of the confusion, any states are working to become the friendliest places for cryptocurrency. Ohio even made an announcement recently that they would allow their residents to cover taxes with the use of crypto payments. In the meantime, the authorities are still in a state of confusion with defining and regulating the assets that clearly are in demand for residents. The ones making the most noise about the lack of organization of the federal policies aren’t stakeholders or even enthusiasts; these concerns also involve academics. Carol Goforth, a professor at the University of Arkansas, recently noted that there are presently four different regulators within the federal government that oversee how digital assets are dealt with, from their categorization to their issuance, and further. These four entities are the: Commodity Futures Trading Commission (CFTC) Securities and Exchange Commission (SEC) Financial Crimes Enforcement Network (FinCEN) Internal Revenue Service (IRS) The CFTC sees crypto assets as commodities, though the IRS shares a similar view in calling them property. The FinCen, which is run by the Treasury Department, regulates them with the same rules as fiat currency, but the SEC sees them much differently as securities. Professor Goforth expressed her skepticism that the regulatory entities would work together anytime soon, leading her to encourage the coordination between them for a more nuanced approach. As she puts it, her version of the rules would force the federal government to deal with each cryptocurrency as it is introduced, specifically identifying them by their functionality and the motivations of users. This is a path that at least one instance shows is happening within the federal regulators. The CFTC publicly requested details on the functionality of Ether and the Ethereum Network on December 11th. The document has 25 different questions that deal with the platforms purpose, functionality, scalability, and more. However, the effort to address a single asset by the CFTC isn’t necessarily a sign that the industry is turning towards the idea that the professor had in mind. None of the other regulators have taking this move and are holding on to the regulatory measures that they already have in line. Still, there’s always a chance that congressional legislators will make some changes in their framework. Darren Soto and Ted Budd, who are both US Representatives, brought in two bills on December 6th that will help with the improvement of regulatory framework and reduce the risk of price manipulation. These bills are called the Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018, respectively. These two bills offer specific regulatory changes that could be made for the process to be smoother for exchanges, users, and everyone else involved. The first bill discusses that many situations that can arise in the market for price manipulation. The other requests an in-depth study that aims to improve the “burdensome regulations that may inhibit innovation.” Warren Davidson, the representative of Ohio, spoke at a conference in Cleveland where he noted his intent to bring in a new bill that would create a new asset class for tokens. As such, the regulation of initial coin offerings (ICOs) would become significantly less difficult. A week later, Davidson suggested a crowdfunding event to help with the creation of the US-Mexico border wall, which would include the use of blockchain and “wall coins.” Even though there appears to be a significant lack of clear regulations regarding cryptocurrency, blockchain technology is already being applied to daily operations. The use of this ledger with supply chain logistics is easily its biggest application, and federal authorities are looking to use it for food safety as well, especially considering the recent E. coli outbreak. The Department of Homeland Security announced their intention to use the technology as a way to protect their own activities. Their three subsidiaries are working together for a clear record of documentation that will help with fraud, counterfeiting, and forgery. The defense authorities for the federal government recently established an app that would help the members of the armed forced to learn how to use blockchain technology for the supply chain as well.
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Bitcoin Supporter Says Crypto is Unconfiscatable as Long as It’s Not in Regulated Exchanges

Bitcoin has many different features, but one of the most important is the fact that users are the real owners of their funds as long as they keep their private keys. However, when users have their funds stored in exchanges, Bitcoin can be confiscated. During a Q&A session during a Tampa Meetup, he said that Bitcoin being non confiscatable applies to exchanges that are not regulated. In general, centralized virtual currency exchanges are not a safe place where to store funds. The company behind the exchange is able to manage the funds as it considers, block some accounts and even experience security issues. If Bitcoin wants to remain non confiscatable, the best what a person can do is to store them in cold storage wallets. No one is able to move the funds from there unless they have the private keys. At the same time, he said that Bitcoin does not have just a single price because there are different markets listing it. He compared the price of Bitcoin (BTC) with Apple stock explaining that Apple’s stock price is determined by supply and demand in just one place. He has also talked about Bitcoin ETF and the fact that to have a stable price of Bitcoin everything needs to sit in one place. He went on saying that having all the BTC in one place is a risk even when it creates a more stable market. For example, he emphasized the fact that if all the BTC are located in just one exchange, hackers might focus only on it. Furthermore, the US government would also have the possibility to confiscate the BTC that users own or trade them. There are several crypto platforms that are regulated, including exchanges such as Coinbase or Gemini. Governments would be able to confiscate the funds that users have on these exchanges, thus deleting one of Bitcoin’s main characteristics. Moreover, he said that Bitcoin being under the control of governments is not positive for the space. A lot of people would completely lose the faith in the popular virtual currency. This is exactly what Satoshi Nakamoto was trying to avoid when it created Bitcoin.
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Hong Kong Businessmen Targeted by Bitcoin Bomb Threats After Recent USA and Canada Attempts

There have been many different ways to steal funds from individuals in the cryptocurrency market. However, a new methodology has been applied in Hong Kong and other countries such as the United States. According to a recent report released by the South China Morning Post, businessmen in Hong Kong are being targeted by criminals that want to steal Bitcoin from them. These scammers try to steal Bitcoins from victims by threatening them that they will receive a bomb if they don’t send Bitcoins in the time span the scammers provide. One of the affected individuals is Michael Gazeley, the CEO of Network Box. He received a message in his business email with this Bitcoin bomb threat. Furthermore, he said that he had to pay $20,000 if he wanted to avoid receiving a bomb in his office. Gazeley said to the news outlet: “This looks like the third wave of blackmail emails plaguing the world in the past few years… I have never seen something like this, which sounds like cyberterrorism, in my 20-year career in cybersecurity.” Nevertheless, he was 99.99% sure that the message was not worth. Indeed, he mentioned that the email had some typo mistakes and the grammar used was not exactly good. That shows that the main intention is to take a few bucks from some individuals rather than really bombing an office. Hong Kong authorities did not provide further information about this issue, thus it is not possible to know the exact number of companies affected by these threats. This is not the first time that there are Bitcoin bomb threats around the world. A few days ago, as reported by NBC New York. Hoax bomb threats spread asking users to pay in Bitcoin. The New York Police Department (NYPD) informed on Twitter that there was an email circulating that contained a threat asking for a Bitcoin payment. However, they say that they did not find any devices in some of the places where the threat arrived. Please be advised – there is an email being circulated containing a bomb threat asking for bitcoin payment. While this email has been sent to numerous locations, searches have been conducted and NO DEVICES have been found. pic.twitter.com/7omOs13Z7Q — NYPD NEWS (@NYPDnews) December 13, 2018 The NYPD went on explaining that the threats are meant to cause disruption and/or obtain money in a fast way. Although the police will be responding to the calls made by the community, they believe that the threats are likely ‘not credible.’ This is not the first time that there are scammers trying to steal Bitcoin and other virtual currencies from users. Earlier this year, scammers on Twitter were asking for Bitcoin and ETH deposits using fake accounts that stole famous people’s identities.
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