Bitmain’s CEO Denies the Secret Crypto Mining Operations

Bitmain’s CEO Denies the Secret Crypto Mining Operations

Rumors have been spread about Bitmain using their new innovations of mining before it is available to the public. These rumors have been brushed aside by Bitmain’s CEO Jihan Wu.

Jihan Wu cleared the air about the accusations at an interview with Fortune.

One example of an accusation was Bitmain using the new application-specific circuit (ASIC) miner invented for a new hashing algorithm.

Ledger Nano S - The secure hardware wallet

The CEO of Bitmain replied to these accusations by saying,  “No, it never happened. We have a small-scale test. We don’t do that. That is not our strategy.”

However, there was evidence at the beginning of the year, 2018 which strongly support these allegations. Monero which is a privacy-based cryptocurrency had activated a hard fork to change the Cryptonight algorithm and thus prevent Bitmain’s new Cryptonight ASIC from being used on its network. However, most of the hashrate that mined the old chain was from Bitmain’s Cryptonight ASICs which was not even shipped to the public.

However the CEO was strongly in denial explaining further,

“There’s some kind of group of people that controlled the majority of the hash rate of Monero for a long time. I would like to say that to develop such a kind of ASIC is not a kind of secret skill that only Bitmain has. Lots of people can do that. For large companies like Bitmain, and especially myself, I do not even have the time, attention or resources to have such a kind of plan to do this. If we develop hardware, we just release and sell it on the market. Right after we have sample machines working, we start sales to the market. We don’t have such kinds of advantages.”

The latest update of Bitmain was tweeted on the 4th of June,

Reports suggest that Bitmain’s goal of going public has led to its CEO clearing doubts from the public’s mind. They are considering to go public either in Hong Kong or the United States.

As per statistics as of now, Bitmain is valued at $9 billion according to analysts. However, Bitmain has internally valued itself at $12 billion.

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Ledger Nano S - The secure hardware wallet