Recent reports indicate that the Chinese giant crypto-mining Bitmain sacks up to 85% of its workforce, as the company feels the strong influence of the cryptocurrency bear market.
While internal problems of Bitmain can create difficulties for the upcoming IPO of the company on the Hong Kong stock exchange, digital currencies on the Bitmain balance sheet may also be at greatest risk during this period.
Kyle Samani, who is the co-founder of Multicoin Capital, stressed that Bitcoin Cash (BCH) and Litecoin (LTC) could suffer from significant bearish pressure, as Bitmain starts unloading its assets worth more than $ 200 million.
Judging by the registration data of Bitmain's IPO, which leaked to the press in March of this year, the company had about 931,000 LTC in the amount of $ 27.7 million and 1.02 million BCH in the amount of – 172.7 million, respectively.
If Bitmain needs to liquidate its assets to continue financing its operations and its upcoming IPO, this will likely lead to a significant influx into the LTC and BCH markets. Ultimately, this may lead to a significant decrease in the price of both altcoins.
And what do you think about this?
