Recently, there have been frequent major events in the currency circle. Not long ago, Zhang Jian, the founder of FCoin, ran away. Recently, the struggle in the mining machine market has become more and more fierce. This time, the police took action and directly arrested people. On December 12, the People's Procuratorate of Nanshan District, Shenzhen, Guangdong Province recently issued an important case information announcement stating that the court had approved the arrest of the suspect Yang Mouxing for the crime of occupational embezzlement.
Yang Zuoxing, the founder and CEO of Whatsminer, was released on bail before the Spring Festival, and is expected to enter the court review stage. 100,000 yuan, the sentencing standard should be fixed-term imprisonment or criminal detention of less than 5 years.
Yang Zuoxing, the master of mining machines, was arrested on suspicion of embezzlement! The industry pointed the reason at Ketuan Zhan, the former chairman of Bitmain.
According to Beishu blockchain, Yang Zuoxing was actually taken away at the end of October 2019. On October 29th, major events happened to the three major mining machine manufacturers. Bitmain fights internally, Jianan Zhizhi goes public, and Yang Zuoxing of Shenma mining machine is arrested. Whatsminer is a mining giant second only to Bitmain, with a market share of around 40%.
It is understood that Bitmain’s lawsuit against Yang Zuoxing has gone through the procedure for one or two years. This time, the Shenzhen police detained Yang Zuoxing on suspicion of embezzlement of RMB 100,000. Although the value of the case is not large, it has been transferred from the civil field to the criminal field. I don't know how it will develop in the future.
Yang Zuoxing can be said to be a genius who studies technology. Including China's three major mining machine manufacturers, and even the world's three largest mining machine manufacturers, Bitmain, which of course claims to have a valuation of 15 billion US dollars. Yang Zuoxing used to be the head of Bitmain's technology, or CTO. The three most important mining machines of Bitmain during its rise were all designed by Yang Zuoxing and his technical team.
Yang Zuoxing used to be an employee of "Roasted Cat" Jiang Xinyu. He once designed a version of the BE300 chip using a full-custom methodology, but after the disappearance of "Roasted Cat", the chips he designed failed to enter the market. Yang Zuoxing did not want his research results to be buried, so he decided to inform Bitmain Zhan Ketuan of the realization of the chip design method "Full Custom Methodology" that can reduce costs and energy consumption. This method can maximize the power consumption on the same process node, and then Yang Zuoxing helped Bitmain through the "mining winter" in the form of part-time work.
After Dr. Yang Zuoxing graduated, his first job was to enter Beijing Ark Technology to do hardware design. In 2004, he entered Vimicro to be responsible for the development of mobile phone audio and video coprocessor chips and project management of mobile phone AP chips.
It can be said that Yang Zuoxing has been working on chips since graduation.
From September 21 to 23, 2019, at the New Era Mining Summit held in Chengdu, Yang Zuoxing wore simple short sleeves and won two awards. Shenma Mining Machine and Yang Zuoxing himself won the "Annual Hardware Award" and "Annual Person Award". In this kind of meeting with thousands of people, Yang Zuoxing can be said to be full of faces.
Yang Zuoxing was also very excited to achieve such a proud result. Throughout the venue, Yang Zuoxing seemed to be in high spirits. He took photos with various people and answered questions from major customers one by one.
However, only one month later, no one expected that Yang Zuoxing, who had been so prosperous a few days ago, would usher in the darkest moment of his life, and was actually taken away by the police on suspicion of "employment occupation". A miner once revealed that Shenma Mining Machinery originally planned to hold the M30S order conference in November, but because Yang Zuoxing was investigated and lost contact, the order conference had to be postponed.
Yang Zuoxing, who was getting proud in 2019, never thought that he would be arrested for 100,000 yuan.
100,000 yuan belongs to the larger category. According to the law, personnel of companies, enterprises, or other units who take advantage of their positions to illegally take possession of their unit's property, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than 5 years or criminal detention.
Generally speaking, from the time when the procuratorate approves the arrest to when the case is transferred to the court, it needs to go through the investigation of the public security organ, and the investigation period is two months. The court has a corresponding review period after the procuratorate believes that it can be sued, and the review period for ordinary procedures is 3 months. Judging from this time period, the Yang Zuoxing case is likely to enter the stage of court review.
The case of infringement of trade secrets investigated and handled by Beijing Haidian has not yet been concluded. However, it is relatively difficult to obtain evidence for infringement of trade secrets. Whether Bitmain can produce detailed evidence is very important.
For the crime of violating commercial secrets, the offender shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and may also be fined; if particularly serious consequences are caused, the sentence shall be fixed-term imprisonment of not less than three years but not more than seven years, and a fine shall also be imposed.
It should be said that in the field of pure technology, Yang Zuoxing has no problems. Why did he suddenly found Shenma mining machine after leaving Bitmain this time? Why is Shenma Mining Machinery suddenly involved in the so-called crime of embezzlement?
The two parties had previously had a dispute over the patent rights of the mining machine technical solution. Before founding MicroBT and developing Whatsminer, Yang Zuoxing said that he had "in-depth cooperation" with Bitmain and developed the above two chips for the company. In 2018, Bitmain and Zhan Ketuan filed a civil lawsuit against MicroBT and Yang Zuoxing, claiming that the technical solution of Shenma mining machine infringed Bitmain's patent involved. Not only that, Yang Zuoxing once mentioned in an interview that one of the reasons why he left Bitmain was that Ketuan Zhan failed to meet his equity needs.
Yang Zuoxing's loss of contact happened just during Bitmain's infighting. On October 29th, Bitmain founder Wu Jihan personally ordered to fire Chairman Ketuan Zhan. Today, Whatsminer is becoming a rival to Bitmain in the business of mining machines. According to a number of people in the mining circle, Whatsminer is very popular among miners, and its sales volume is likely to have surpassed that of Antminer, threatening Bitmain’s dominance. Earlier, Yang Zuoxing said at a mining conference that mining machine manufacturers have entered an era of flourishing, and Bitmain is no longer the only one. Now, when all the flowers are waiting to bloom, he has been arrested and has become the epitome of the fierce competition among mining machine manufacturers.
Behind the court proceedings between the two mining machine manufacturers is that the mining machine industry has entered a stage of intense fighting. Coupled with the sluggish digital currency market, the sales of mining machines for major manufacturers have plummeted, and they are facing a desperate situation to survive.
At present, the main mining machine manufacturers on the market include Bitmain, Canaan Technology, Ebang International, and MicroBT. Among them, the market competition between Bitmain's Antminer and MicroBT's Whatsminer is the most intense.
When Ketuan Zhan was in charge of Bitmain, there were big problems in marketing and sales. When the output of Antminer was insufficient, the pricing strategy was much higher than that of Shenma mining machine products, and some unfriendly advance payments and pre-orders were introduced, etc. Although higher profits have been obtained through these measures, the market share has dropped sharply and the market control has been lost. And Shenma mining machine has seized a lot of market share by virtue of price war and cost performance.
It wasn’t until Wu Jihan’s strong return to Bitmain that Antminer’s sales strategy changed. It began to pay more attention to the cost-effectiveness of products, and made drastic adjustments, reducing the price of all high-priced orders by more than 40%. The product price of the mining machine at that time was comparable, and then the price difference was returned to the miners in the form of coupons without threshold.
According to Beishu Blockchain, after Yang Zuoxing was investigated, Shenma Mining Machinery did not appoint a new CEO, but the heads of various fields jointly maintained the operation of the company. Some customers who bought futures sought refunds because of concerns about the Yang Zuoxing case.
The sales director of Whatsmart previously disclosed that the sales volume of the M20 series in 2019 will be 600,000 units. It is estimated that with other products, the total sales may reach 1 million units. However, due to the low sales price of Shenma mining machines, the profit in 2019 is not high, and its own funds are limited. It often adopts the strategy of starting manufacturing after customers pay.
In 2019, Whatsmart relied on price wars to carve up Bitmain’s market share, but to a large extent it was also caused by Ketuan Zhan’s wrong sales strategy. After Wu Jihan returned to launch the sales of the three axes, the sales of Bitmain S17 high-power mining machines rebounded. At present, the price of Bitcoin is stable at about 10,000 US dollars, but major mining machine manufacturers have been affected by the epidemic, resulting in insufficient production capacity and the inability of some mines to start operations. Bitmain, Canaan, and Whatsmart have all issued announcements to postpone production, delivery, and after-sales. Innosilicon, located in Wuhan, was affected by factors such as the closure of the city, and the situation was severe.
As the Bitcoin halving date is approaching, many people are beginning to worry about the bad effects of the halving. Bitcoin halving, how will the mining industry change?
In the face of Bitcoin halving and the impact of the epidemic, the old miners who made a good layout years ago can run the machine without panic, so how will those new miners who are optimistic about the market and ready to enter the market make choices?
The halving is coming. If the price of Bitcoin continues to rise, there will be a large number of mining machines like s9 hovering on the verge of shutdown. A large number of old models have been eliminated, and high-cost mining machines have been eliminated, while miners with lower operating costs will gain a firm foothold. The mining industry may reshuffle the cards, passively evaluate the operation situation, and the competition among mine farms will become increasingly fierce.
While the old models are eliminated, mining machines with better performance will become the mainstream and continue to enter the market, and the cost of mining machines will be lowered.
Although the halving is approaching, you can enter the mining site at any time. The prerequisite is to control the cost of mining machines and electricity costs. When the profit of a single T is high, it is not necessarily a good time, because the price of mining machines is high at that time, and the cost of electricity may also be high.
If you buy the right mining machine, it is a good investment to enter the market at the right time. For customers who are not particularly advantageous in electricity costs, choose a product with a better power consumption ratio. A longer life cycle means that you can get more BTC and be more profitable. potential.
The pricing of mining machines in the future may not necessarily be completely in accordance with the payback cycle. Some mining machines will achieve a substantial extension of operation, so that the mining machine can definitely mine for 4 years. For investing in mining after halving, we cannot simply expect the payback period to be within 10 months.
Now the price of low power consumption and high computing power machines is very reasonable. If the power consumption ratio of the machine is high, it is necessary to replace a part of the machine with low power consumption. In the case of relatively cheap electricity prices, it should be replaced to maximize the advantages of low electricity prices. Under the same power resources, there can be more computing power. To sum up, the price of mining machines in 2019 is basically determined according to cost + gross profit. Due to the large number of futures sales, this makes the payback cycle not very accurate.
In order to better layout the halving, miners will choose mining machines with better quality, high cost performance and low power consumption. At present, the more common ones are Whatsminer M21S-56T, Antminer S17pro-50T and so on.
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Disclaimer: The information published in this article does not represent any investment suggestion of the company, nor does it constitute any investment advice. The picture is from the Internet. If there is any infringement, please contact to delete it. Please note the source for reprinting.
