A local Hebrew-language news portal, Globes today reported that the cryptocurrency mining giant, Bitmain will shut down its development center based out of Ra’anana, Israel this week. The branch is run under Gadi Glikberg and will lay off all the 23 employees working at the location. Glikberg, the Vice President of Bitmain will also leave along with the employees.
The speculated reason for the shut down is the general collapse of the cryptocurrency market and devaluation of Bitmain in the mining industry as other players start to take over. This year, many reports, including those released by BitMEX Research had reported heavy fund damage dealt by Bitmain as it sold all its Bitcoin [BTC] to buy Bitcoin Cash [BCH].
While some hold the opinion that Bitmain was acting as a central reserve for Bitcoin Cash [BCH], it all soon underwent trauma as the hard fork of the blockchain approached.
Recently, Bitmain announced that it will be focusing on the Bitcoin Cash internal war and took off from the Bitcoin ecosystem to fight the conflict. This backfired and resulted in a major collapse of the market where the bear got its revenge on the bull.
Currently, the cryptocurrency market appears to be doomed as all the coins across the board are painted red. This defeat is owed to the correlative nature of altcoins with BTC.
In fact, this is what broke the sideways movement of the cryptocurrency chart. In the week that followed the Bitcoin Cash hard fork, the cryptocurrency market regained its nature of volatility wherein all the coins fell by more than 10% at least. Since then, the bull has failed to get the market back on its feet with occasional wins.
Bitcoin Cash and Bitcoin SV, the two forks have occupied the sixth and eighth spot on the rankings at present. Here, BCH is trading at $107 with a market cap of $1.8 billion whereas BSV is trading at $98 with the market cap equivalent to $1.7 billion.
The post Bitmain lays off 23 employees in Israel branch; company set on path of doom? appeared first on AMBCrypto.