In a recent tweet posted by the Bitcoin Cash [BCH] proponent Calvin Ayre, he took another hit at the Chinese mining giant Bitmain, aka the enemy. Through the post, he aimed at ‘scrutinizing’ the previously announced Bitmain IPO and exposing it in front of the investors. The Twitter post of Ayre read:
“covering this mess of an IPO target is a #CoinGeek public service to investors”
The post opened by stating that the announcement made by Bitmain about the IPO may have thrown a positive light on the Bitcoin Cash ecosystem and markets. Despite this, on scrutinizing the matter, Ayre’s Coingeek claims that the excitement was short-lived. Furthermore, the post conveyed that the new analysis is even more disappointing than the previous one where several controversial facts were brought to light regarding the Bitmain IPO.
First, Coingeek began by mentioning that the IPO has added much dubiety in the matter of Bitmain’s solvency. Here, Coingeek alleged that the mining company holds about 28% of the company assets in cryptocurrency, driving a belief that the company will initiate a crypto-fund in the future. It added:
“However, this is more than likely not the case, as Bitmain’s physical inventory, for example, provides the company with a certain amount of diversification.”
About the physical inventory, the post mentioned that it has reduced starkly in terms of value. Furthermore, the reason for this was stated to be the market failure of the company wherein Bitmain was sitting on products it could not sell. Therefore, Coingeek concluded that the situation is a dead-end play for Bitmain as the inventory and market success, both the significant factors are missing from the equation.
However, the Coingeek post tweeted by Ayre was criticized by a user called Anthony_Banks. He wrote:
“sounds more like the screechings of a sore loser”
Recently, BitMEX Research released a report on the Bitmain IPO in two parts. Here, the research proved the fact that Bitmain has suffered a massive loss in the 2nd quarter of 2018. It also speculated the reason for the loss to be its incompetent mining equipment that lost from its market competitors.
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