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Summary
Summary
Topic: Bitmain Gongdou upgrades again, where does the mining bully go? On May 8th, Bitmain’s “Gongdou” reappeared a new development. Ketuan Zhan was robbed when he was obtaining a business license from the Beijing Industrial and Commercial Bureau. Beijing Bit issued an official statement stating that the public announcement and registration by the market supervision department is a registration error, and it will reserve the right to pursue the legal responsibility of Ketuan Zhan and related parties. Bitmain has been fighting for a long time, coupled with the recent negative news, its plan to go to the United States for IPO may fail; in addition, the continuous decline in the market share of mining machines has also sounded the alarm for Bitmain. "It will eventually drag down the rapid development of Bitmain.
Market: BTC soared, and other mainstream tokens performed mediocre. The total market value of digital tokens this week was US$275.19 billion, an increase of US$18.66 billion or about 7.3% compared to last week; the average daily turnover rate was 61.4%, a decrease of 4.1% from last week. The current price of BTC is 9842.6 US dollars, with a weekly increase of 11%, and the average daily trading volume is 48.3 billion US dollars. The current price of ETH is 212.99 US dollars, with a weekly decline of 0.6%, and the average daily trading volume is 20.7 billion US dollars. This week, the BTC balance on the exchange was 556,000, an increase of 709 from last week. The balance of ETH on the exchange was 14.841 million, a decrease of 4388 from last week. Among the BICS secondary industries, the proportion of the data & storage industry has increased significantly.
Output and popularity: The computing power of BTC and ETH has risen. The mining difficulty of BTC this week is 16.1T, an increase of 0.15T from last week, and the daily average computing power is 112.08EH/s, an increase of 9.77EH/s from last week; the mining difficulty of ETH this week is 2274, a decrease of 44.28 from last week, The average daily computing power is 178.3TH/S, an increase of 5.03TH/S from last week.
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Risk warning: regulatory policy risk, market trend risk
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1. Bitmain Gongdou upgrades again, where does the mining bully go?
In less than two weeks, there have been two cases of crowds scrambling for corporate documents in Beijing over disputes over control of companies. First, Dangdang Li Guoqing and his wife competed for the official seal in the office, and then Bitmain executives competed for the business license in the Industrial and Commercial Bureau.
1.1 The storm of "grabbing a business license"
On May 8, 2020, Ketuan Zhan, the former co-founder of Beijing Bitmain, received the business license of the company whose legal person is Ketuan Zhan at the Government Affairs Center of Haidian District, Beijing. However, dozens of unidentified people suddenly appeared, and the two sides clashed. Take away the business license of Beijing Bitmain.
According to media reports, Liu Luyao, the current legal person of Beijing Bit, and the person in charge of the mining center appeared on the scene. At present, both the Beijing Haidian District Industry and Commerce Bureau and Ketuan Zhan have called the police, and Bitmain’s Beijing office is also under strict security, prohibiting outsiders from entering and leaving.
A business license is equivalent to an enterprise's ID card, and its name change is extremely important for a company. Previously, Bitmain’s business license was changed from Ketuan Zhan to Jihan Wu, and then Jihan Wu to Luyao Liu. The two legal person changes were approved by the company’s internal vote and submitted to the industry and commerce department.
There is no clear explanation as to why the dismissed Ketuan Zhan was able to obtain the information on the change of legal representative within Bitmain. According to speculation, it may be that Ketuan Zhan’s administrative reconsideration of Bitmain’s previous legal person change was passed, and the most original business license may be robbed this time.
1.2 "Gongdou" has a long history
This is another direct conflict following the war of words between Ketuan Zhan and Jihan Wu over Bitmain's large-scale layoffs in early 2020. However, the dispute between the two parties over the control of Bitmain has a long history.
In October 2013, Ketuan Zhan and Jihan Wu co-founded Bitmain, and their positions are co-chairman and co-CEO. Ketuan Zhan is responsible for leading the research and development of the chip technology team, and Jihan Wu is responsible for the blockchain business.
In November 2015, Bitmain's latest ant mining machine S7 was mass-produced, which became a watershed in the BTC mining machine industry.
In 2017, the encrypted asset market ushered in a bull market. With the help of Bitmain, the "rich incubator", the two have repeatedly appeared on the rich lists such as Hurun and Forbes.
In 2018, Bitmain became the world's largest encrypted token mining machine company and officially stood at the top of the pyramid. Ant mining machines occupy nearly 80% of the market share, directly and indirectly controlling more than 50% of the BTC network computing power.
On September 26, 2018, Bitmain submitted a prospectus to the Hong Kong Stock Exchange, with a maximum valuation of US$50 billion. Bitmain was in the limelight for a while.
However, the "dual CEO" structure of Bitmain is doomed that once there is a great conflict between Wu Jihan and Zhan Ketuan, it is easy to stage a "brother against enemy" drama.
In the second half of 2018, Bitmain’s negative news continued: the listing was blocked, the price of mining machines plummeted, the gamble on BCH failed to pay off, and artificial intelligence chips fell behind. At the same time, more and more funds hope to enter the blockchain industry through mining machines. With the entry of competitors such as Canaan Creative and Shenma Mining Machines, Bitmain's status in the arena has begun to be challenged.
At this time, the shadow of Bitmain's "Gongdou" first emerged, and the two had completely different visions for the company's future. Wu Jihan's focus is mainly on the blockchain, more precisely, mining machines, while Zhan Ketuan focuses on chips and AI. During the bull market, the company still has enough funds for the two to try and make mistakes, but once the bear market comes, the company must reduce expenditures to survive the winter.
Many blockchain companies did not survive the cold winter of 2018. Bitmain also carried out large-scale layoffs, and both parties expressed dissatisfaction with laying off employees in their own fields. In January and February 2019, Bitmain lost $345 million and $280 million, respectively. At this time, the two began to blame each other.
In March 2019, Bitmain's business was further biased towards artificial intelligence, Wu Jihan was forced to leave, and Zhan Ketuan took power.
In July 2019, Jihan Wu launched a new company, Matrix, whose main business includes exchanges, mines and Tokenfund. At this time, the employees of Bitmain were full of complaints, especially the second annual organizational structure adjustment that Ketuan Zhan implemented internally, which directly caused a large number of old employees who had followed Bitmain for many years to leave, and the internal public anger was great.
In October 2019, with the support of investors and company employees, Wu Jihan made a strong comeback. On October 28, the legal representative and executive director of BBT were changed from Ketuan Zhan to Jihan Wu. On October 29, Wu Jihan issued an internal letter announcing the dismissal of Ketuan Zhan from all positions in Bitmain.
In November 2019, Jihan Wu quickly convened a general meeting of shareholders and abolished Ketuan Zhan's special voting rights. Ketuan Zhan also filed an administrative lawsuit with the Beijing Haidian District People's Court, starting a long road to litigation.
In January 2020, Bitmain began to lay off employees, and the AI-related business team was almost wiped out. While Ketuan Zhan issued an article stating that he "resolutely opposes layoffs, this is committing suicide", while Jihan Wu said that Ketuan Zhan was "fat, stubborn, refusing to listen to reasonable advice, and operating in a suicidal manner".
1.3 Where does Bitmain go from here?
According to Tencent News "Periscope", Bitmain has submitted a listing application to the US Securities and Exchange Commission in late October 2019, and plans to complete the listing in early 2020.
However, recently, Bitmain has been plagued by negative news: large-scale layoffs, management shocks and multiple legal person changes, serious internal fighting between the two founders, technology stagnation, mining machine hoarding, etc., and the IPO in the United States seems to be drifting away.
In addition, more than 80% of Bitmain's revenue comes from mining machine sales. The volatility of the encryption market has questioned the sustainability of the mining machine business model; in addition, the mining machine market share has been declining in the past two years , It also sounded the alarm for Bitmain.
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2. Market: BTC soared, other mainstream tokens performed mediocre
2.1 Overall market: BTC soared, other mainstream tokens performed mediocre
This week, the ChaiNext Digital Asset 100 Index closed at 860.65 points, up 8.1%. The ChaiNext Digital Asset 100X Index closed at 2102.64 points, up 1.26%.
The total market value of digital tokens this week was US$275.19 billion, an increase of US$18.66 billion or about 7.3% compared to last week.
The average daily turnover of the digital token market was US$161.67 billion, an increase of 2.4% from last week, and the average daily turnover rate was 61.4%, a decrease of 4.1% from last week.
This week, the BTC balance on the exchange was 556,000, an increase of 709 from last week. The balance of ETH on the exchange was 14.841 million, a decrease of 4388 from last week.
The market value of USDT is 6.41 billion U.S. dollars, an increase of 38 million U.S. dollars from last week, and the premium rate of USDT relative to the U.S. dollar has increased.
2.2 Core tokens: BTC soared, other mainstream tokens performed mediocre
The current price of BTC is 9842.6 US dollars, with a weekly increase of 11% and a monthly increase of 34.2%. The average daily turnover is 48.3 billion US dollars, and the average daily turnover rate is 28.3%.
The current price of ETH is 212.99 US dollars, with a weekly decrease of 0.6% and a monthly increase of 23.4%. The average daily turnover is 20.7 billion US dollars, and the average daily turnover rate is 88.8%.
The current price of EOS is $2.76, with a weekly decrease of 4.5% and a monthly increase of 1.1%. The average daily turnover is 3.81 billion US dollars, and the average daily turnover rate is 147.9%.
This week, the monthly volatility of the main tokens was the same as that of Hangzhou, and the price fluctuations decreased.
This week, the monthly volatility of the main tokens was the same as that of Hangzhou, and the price fluctuations decreased.
2.3 BICS industry: The proportion of data & storage industry has increased significantly
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries, the market value of data & storage has increased significantly; the market value of the leisure and entertainment industry has decreased significantly.
This week, the BICS secondary industries with a more obvious increase in the number of tokens are physical assets, data & storage, and non-bank financial and retail e-commerce companies with a more obvious decline.
2.4 Market opinion: BTC’s eight consecutive positive weeks may be unsustainable
This week, BTC continued to rise, breaking through $10,000. BTC's weekly solid line has risen for 8 consecutive times, and the weekly line has 8 consecutive positives, which is an extremely rare market. Even at the end of the bull market at the end of 2017, such a "miracle" was not created. However, it should be noted that the continuous sharp increase has made the short-term risk more and more serious, and the market sentiment is too high, so we must be more vigilant against the emergence of extreme market conditions.
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3. Output and popularity: BTC and ETH computing power rise
The computing power of BTC and ETH rose. The mining difficulty of BTC this week is 16.1T, an increase of 0.15T from last week, and the daily average computing power is 112.08EH/s, an increase of 9.77EH/s from last week; the mining difficulty of ETH this week is 2274, a decrease of 44.28 from last week, The average daily computing power is 178.3TH/S, an increase of 5.03TH/S from last week.
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4. Industry news: the popularity of blockchain is not decreasing
4.1 Libra Association Appoints Former U.S. Treasury Department Official as CEO
Jinse Finance reported that Stuart Levey, who is currently the chief legal officer of HSBC, has been appointed CEO of the Libra Association. Levey served as deputy director of the U.S. Treasury Department's Directorate of Terrorism and Financial Intelligence from July 2004 to March 2011. He also previously worked for the U.S. Department of Justice.
4.2 The 24-hour contract market liquidation exceeds 758 million US dollars
According to the contract market statistics report, in the past 24 hours, the contract market in the entire network has a total of 758 million US dollars in liquidation, and the number of people in liquidation is 37,086. Among them, Huobi lost $61.47 million, OKEx lost $246 million, BitMEX lost $283 million, and Binance lost $166 million. The top three currencies with the liquidation amount are BTC with $580 million, ETH with $69.63 million, and EOS with $29.09 million.
4.3 Ethereum is expected to provide staking in the third quarter of 2020
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
For the original text of the report, please refer to the research report released by [Tongzhengtong Research]: "Bitmain Gongdou is upgraded again, where does the mining bully go?" ——Blockchain Weekly 200510》
