Bitmain IPO announced with totally legit and unsuspicious BCH pump

crypto.inferno (67)in #blockchain • 6 years ago

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BCash goes through the roof the same day the IPO is announced. Probably a coincidence, right?

Mining behemoth Bitmain filed for IPO on Wednesday. In one of the most controversial moves since Meghan Markle closed her own car door, the company is seeking to raise up to $18 billion. That’s $18,000,000,000. And we’re talking dollars, not DOGE here. That’s the GDP of Yemen.

Bitmain is already wealthy. Disgustingly wealthy. The company made $2.5 billion last year. This year, it had beaten that by June. We’re talking a whole new level of disgusting here. They sold 1.62 million mining rigs in 2017 and another 2.56 million by the end of June 2018. They also mine bitcoins. A lot of bitcoins. And BCash. A LOT of BCash. They like BCash. They really like it a LOT.

Bitmain CEO Jihan Wu is a vocal supporter of BCash, although he prefers to call it Bitcoin Cash. So the company holds a massive amount. Like obscenely massive. Not only have they been mining it, they’ve been buying it with the BTC they mine. They have a REALLY BIG BAG of BCH. One of the problems of this story is that it’s already run out of zeroes to explain the large size of the sums involved, but they’re believed to hold around 1 million BCH, or 6% of current supply, worth well over half a billion dollars.

Except, heh. Here’s the thing.

BCash isn’t bitcoin, despite what Jihan Wu and his associate Roger Ver say. It doesn’t have the liquidity of BTC. So 1 million BCH isn’t really ‘worth’ half a billion dollars. If you tried to sell it, the price would drop faster than a pair of teflon Y-fronts. So having taken a colossal punt on BCH, goes the theory, they need to find a way to sell it without cratering its value. The IPO is that strategy or, as some people have called it, ‘Exit scam’.

Is it any coincidence that BCH rose by 20% on the day the IPO was announced? That a coin apparently in serious decline due to a well-earned lack of userbase and confidence in the crypto world would miraculously recover?

We’re sure it’s all totally legit and that Bitmain haven’t just burned a load of their last remaining BTC to pump BCash in a Hail Mary effort to increase its value before their public offering.

Right?