Former Bitmain Employees Look To Launch Crypto Custody, OTC Trading And Bitcoin Lending Startup

Ex Bitmain Employees To Launch Crypto Financial Services Startup

A new financial services startup firm is currently in the works, this new startup is being spearheaded by ex-employees of the renowned crypto mining company Bitmain.

It has been found out that the startup team comprises of former team members of the project “Copernicus” of the crypto mining company.

According to insider information, the startup will support lending of cryptocurrency, over the counter trading and custody services.

Bitmains Fork In The Road

One of the two Bitmain sources said that two wings exist within Bitmain, with one focusing on Bitcoin Cash and blockchain development, while the other on chips for mining cryptocurrency. The two wings are aligned with the interests of the co-founders Jihan Wu, and Micree Zhan respectively.

The startup crew is a combination of the Wu’s crypto mining chips team and those from the Copernicus project.

The Copernicus project was launched last year to increase development of Bitcoin Cash, along with the development of its wormhole protocol.

Due to the Bitmain’s recent downsizing, that has inspired the new crypto startup, the Copernicus project also has had no new updates since December 2018.

Startup Incorporation

Yusheng Ge, who is currently a major shareholder of Bitmain, is rumored to also be the on the new company’s incorporation documents. This rumor was defended by a source who said it wasn't surprising, as Ge has always been a proponent for Wu’s ideologies at Bitmain.

When asked for a comment on the rumors, Bitmains spokesperson initially offered no comment but retorted that Wu will still remain with Bitmain.

Ipo Challenges

4% of Bitmain’s shares were documented to be owned by Ge, according to the prospectus of their IPO. Ge was also listed as a principal investor and an executive director.

In November of 2018, in an alteration to the business registration, both Wu and Ge were removed as board members.

This change in the executives, regardless of their unchanged positions as co-CEOs, may negatively affect their IPO application.

According to a source conversant with the IPO process, if 6 months pass after the application without advancing to a listing hearing, the application will lapse.

The Hong Kong stock exchange has been suspected to be hesitant to grant IPOs due to reservations about the stability of businesses involved in cryptocurrency mining.

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