There are always some developments taking place behind the scenes of the cryptocurrency world. Although the following rumor has not been officially confirmed by the company in question, it would appear there is some genuine mainstream media attention for this development. It would appear Jihan Wu is stepping down as Bitmain CEO because he is allegedly growing concerned over the company’s financial state.
Jihan Wu Allegedly Rethinks his Bitmain Role
It has been a pretty interesting year for Bitmain throughout 2018. Although a growing portion of the cryptocurrency community has seemingly taken an adverse stance toward this company, their continued push to develop and ship out ASIC miners shows the cryptocurrency mining ecosystem is still in a good place. Even so, the influx of ASIC miners has also caused a few network disruptions in the process, which is part of why some people are not too pleased with this company as a whole.
Despite the overall flack the company has gotten throughout 2018, the big announcement was how Bitmain contemplates filing for an IPO. That in itself is a remarkable decision, although one that would potentially bring a lot more mainstream attention to the cryptocurrency industry as a whole. Unfortunately for the company, there are also some concerns as to whether or not filing an IPO would make financial sense.
It now appears – and this is still unconfirmed by Bitmain – that Jihan Wu may consider stepping down as Bitmain CEO. His main concern would, according to some sources, be the “probability of going bankrupt”. That is not a positive outlook for the cryptocurrency industry’s biggest mining hardware manufacturer. It would also put an end to their IPO plans once and for all.
One has to wonder why this type of decision would be made at this crucial time for Bitmain. Their gamble to go nearly all-in on Bitcoin Cash may have backfired a bit. After all, it would appear the company has suffered a severe net loss for the year 2018, which can be attributed to many different factors. The overall drop in Bitcoin value also affects their profitability in a major way, although one has to wonder which Bitcoin price the company needs to make a profit in the first place.
Until Bitmain or Jihan Wu makes this news official, it is nothing more but a rumor first and foremost. However, it would effectively be quite a catastrophic development for the cryptocurrency industry. Although the bearish year 2018 has claimed many victims – both among speculators and companies laying off staff members – and adding Bitmain to that list would be a big blow. Even so, the cryptocurrency industry can survive without Bitmain, thus things should return to normal relatively quickly.
According to SCMP, another founder of Bitmain will step aside from the company in the near future. There is, according to the same outlet, a new Bitmain CEO on the shortlist, which would be none other than Wang Haichao. What all of this means in the long run, remains to be determined. Very little information has been officially confirmed by any party involved. A few interesting weeks lie ahead for the cryptocurrency industry, by the look of things.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.