Bitmain’s Jihan Wu Denies Pleading with Temasek

The faulty disclosure of pre-IPO funding partners has raised suspicions that Temasek may withdraw its support for the leading ASIC producer.

Jihan Wu, the founder and CEO of Bitmain, has denied allegations that he had to personally convince Temasek to make a decision on the pre-IPO round of financing. In a recent tweet, Wu stated the suggestion of personal talks with Temasek is fake news:

The Bitmain IPO has raised eyebrows in the crypto community, being seen as a money grab to sustain the leading producer of ASIC chips and mining rigs through a potential dry spell. The criticisms over the pre-IPO funding falling through come from a group of prominent crypto figures going under the moniker “Magical Crypto Friends.” It consists of Litecoin’s Charlie Lee, WhalePanda, Samson Mow, and Riccardo Spagni, who have been critical of Bitcoin Cash (BCH) and, by proxy, of Bitmain. The reason may be the close connection and indications of support for BCH from the Bitmain mining pools, as well as outright market purchases.

Some see the Bitmain IPO as seriously flawed. Still, the event is scheduled for later this year, and Bitmain is expected to start trading publically at the beginning of 2019.

The Chinese mining equipment maker has been accused of holding too much power over the market, in effect being capable of taking over even the Bitcoin network or supporting the Bitcoin Cash network to compete with the leading coin.

Despite the bear market, Bitmain may be headed for a successful year in terms of revenues. Hashing power is still in demand, and Bitcoin’s mining levels remain as high as ever at near 50 million TH/s. Since BTC prices remain above $6,000 for now, mining may still be profitable.

However, Bitcoin Cash mining may still be done altruistically as the asset’s price has remained relatively depressed, with trading volumes slowing down. BCH hovers around $521 but has fallen below 0.1 BTC, sliding to 0.08 BTC. This additional failure may also hurt the revenues and reserves of Bitmain, which holds 1 million BCH coins collected through mining and open market purchases.