Could Bitmain’s Bankruptcy Be Responsible For The Death Of Bitcoin Cash? 

Bitcoin Cash suffered the decline of the decade after the start of the BCH fork on the 14th of November. As you probably know, the hash war was between two major developments teams within the BCH community. One was Bitcoin ABC and the other was Bitcoin SV. The war didn’t just affect the price of BCH but the price of Bitcoin and subsequently the price of the entire market. Up till now, BTC hasn’t recovered. Well, the rumor in the cryptocurrency community is that Bitmain, one of the leading producers of mining equipment and leading mining pool operators in the industry, may have had an indirect role to play in the fall of BCH.

How Bitmain’s Troubles Have Affected The Market

The first time trouble was spotted in Bitmain was just before the hash war started. The reports that reached the public was that Jihan Wu was removed from the executive board of the company and replaced by Zhan Ketuan. While the details of this action were not made public, something unexpected happened right after. Reports showed that 90,000 cryptocurrency miners were sent to Xinjiang to mine BCHABC or BCH as it is now called.

Bitcoin Cash (BCH) Price Today – BCH / USD

NamePrice
bitcoin
Bitcoin
$8,065.280.694%
bitcoin-cash
Bitcoin Cash
$218.97-0.15%

When the war was over, sources claimed that the Q3 report of Bitmain indicated that the company lost up to $740 million. This is minus the money it lost during the hash war. Rumors also claimed that the upcoming IPO by the company is its exit strategy.

Following the hash war, a team at BitMEX conducted a research that showed that both Bitcoin ABC and Bitcoin SV lost a cumulative amount of more than $10 million. The losses the company has suffered led it to close its Blockchain development center in Israel.

Lawsuit Still In Play

As if the financial woes were not enough, Bitmain got slammed with a lawsuit by UnitedCorp. The company sued Bitmain, Kraken, Roger Ver, Bitcoin.com for manipulating the BCH network right after the fork started. With all these problems, Bitmain is also liquidating its BCH stash in a bid to pay off debts of up to $600 million. Keep in mind that this information has not been confirmed by the company.

According to a cryptocurrency enthusiast on Twitter:

“No-action speaks louder than words. It is obvious that Jihan has abandoned the Bitcoin Cash project. Apart from that, we received information that the company is liquidating its BCH in secret to pay off $600 million in supplier debts.”

This comment was made by the same individual who said that Bitmain lost $740 million in the third quarter of 2018.

BCH Hangs In The Balance

While this information is yet to be confirmed, it is a logical explanation for the significant decline in the price of BCH. After occupying the 4th position for months, BCH fell to the 7th position as it shed off price and market share.

Just before the hash war started, the cryptocurrency was trading at $500. At the time of writing, it is trading at $85.32. This shows that it is down by 13.07% against the USD and down by 9.98% against BTC. The trading volume over a 24 hour period is $96,836,743 and the market capitalization is $1,493,890,936.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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