Canaan Creative’s Avalon Mining Co-Founder Steps Down Over Strategy Disagreement
Avalon Mining Co-Founder Steps Down Over Strategy Disagreement
Xiangfu Liu, one of the three co-founders of Canaan Creative, which makes the Avalon mining equipment, has decided to step down from his leadership role at the company. He will no longer be a board member now, a job that he had since 2013.
The crypto media outlet Coindesk has talked to someone familiar with the situation and has affirmed that the man left the company after the unsuccessful Initial Public Offering (IPO) that the company tried with the Hong Kong Stock Exchange last year.
According to this inside source, the reason for him to leave the company were some disagreements about the strategy of the company moving forward. The management wanted the company to continue to be a chip manufacturer and to work with artificial intelligence. Unlike Bitmain, which works in the same segment of the industry, Canaan does not mine cryptos by itself.
The problem was that the internal leadership wanted to keep things that way and the co-founder was not very happy with the idea. Liu has a background in computer science and, according to the source, he believes that that hardware and software should not be separated in the industry.
Because of this, he wanted the company to follow Bitmain and also work with mining pools as well as the mining equipment.
Liu Remains A Major Shareholder
Due to all these disagreements, the inside source that talked to Coindesk affirmed that Liu has decided to step away from the board. However, he is still a major shareholder of Canaan Creative with around 17.5% of the total shares. In total, the three co-founder holds half of the company’s shares.
Before leaving the company, he was mainly in charge of the overseas business strategy of the company, a role that will be filled by someone else now.
His departure happened at the same time that the company has laid off some more people, according to sources. However, the scale of the layoffs was not announced.
Many crypto mining companies are laying off staff now as they are closing offices and even the giant Bitmain has been severely affected by the bear market, which ate away most of the gains from this type of company.
Now, Canaan Creative is trying to apply for another IPO, this time at the New York Stock Exchange (NYSE). However, it is unclear whether the company will have some success after the failures in Hong Kong.