Bitmain’s Blockstream Chief Strategy Officer, Samson Mow, has tweeted that the entire team, named Copernicus, was laid off. The team was in charge of development of BCH client database. Unfortunately, the dismissal happened right before Christmas Eve.
Bitmain has quietly laid off their entire Copernicus team (#Bcash GO client). Only 1 week notice. Some had just joined the company. Layoffs just in time for Christmas. #BitmainIPO @HKEXGroup @SCMPNews pic.twitter.com/Kt2Ce90sBW
— Samson Mow (@Excellion) December 23, 2018
As we all know, bad luck always comes in threes: this tweet has spread panic among other Chinese employees. Rumours state that Bitmain allegedly plans to lay off 50% of its stuff next week.
there’s post on Chinese Linkedin (usually very high accuracy, posted by employees themselves) saying Bitmain will start a layoff the coming week …
A separate rumor said the plan is for more than 50% of its headcount ???! pic.twitter.com/b0ZSBuPX4d
— Dovey Wan (@DoveyWan) 23 декабря 2018 г.
Bitmain has nearly 2000 staff workers, if the rumors are credible, and Bitmain indeed is about to fire 1000 workers, that will cause a big damage not only to a mining world, but also to the whole crypto market.
The first question that comes to your mind – “Why would they do this?”. Although, the official reason has not been announced yet, many people think the core of the problem is significant downfall of Bitcoin’s price. We also should not forget that Bitmain possess substantial assets of Bitcoin Cash, which has been under big pressure since its hard fork on November 15. It is worth to mention that the company filed an IPO back in September, even though the IPO was considered to be lucrative one then, now the company is struggling with it.
This year’s autumn season was not the greatest for Bitmain, first, the company’s WeChat account was banned, as many others crypto-related accounts due to Chinese government ban of the cryptocurrency. Second, the U.S.-China trading war has also brought losses to Bitmain as its equipment has a tariff of 27,6%. Third, 617 BTC were stolen from Bitmain’s account, so they had to file a suit against the criminal.
In addition, we want to recall the report which shows how much Bitmain has lost this year, the number is quite impressive, about $740 million. This loss makes the fall the worst in Bitmain’s history. Nevertheless, we all have to believe that the biggest breakthroughs almost always come after the most enormous setbacks.
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