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Bitmain IPO Pumps Bitcoin Cash Price

The cryptocurrency market is a strange one when we talk about prices. Whenever there is a pump, many people are not able to find the reason behind the price movement, to be fear, there are certain movements that have no real explanation. But the pump that Bitcoin Cash, the main Bitcoin hard fork has experienced today (spiking 20% up) has a clear explanation, although also a weird one.
The blame for this humongous pump of more than 20% goes to Bitmain. Yes, the billion dollar revenue company that has more than 70% of the mining hardware market allocated under its wing. While there were rumors that they were in dire straits, and even Bloomberg wrote some articles about this, the truth is that their financial results for the second quarter were top notch.
This disclosure was needed to file their Initial Public Offering in China, where they will go public. much has been discussed about the reasons for Bitmain going public, but the fact is that with these results, it should be clear that is just for expanding its business. Bitmain offers a range of mining hardware for a series of cryptocurrencies, going from Bitcoin and Ethereum to some obscure ones.
But why would a cryptocurrency pump so much over an IPO of a generic cryptocurrency mining company. Well, the fact is that Bitmain holds a big quantity of Bitcoin Cash in their pockets, and should the company fail its IPO, they would surely dump it on the market when the time is right to do it. If the rumors would have been right, there should have been a big drop in price when that happens. Also, Bitmain’s CEO Jihan Wu is a big believer in Bitcoin Cash. By opening their books to the world, Bitmain has dispelled this uncertainty from the market and investors are free to trust again and put their money on Bitcoin Cash.

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