Hong Kong Stock Exchange labels Alleged Bitmain IPO as Rumors

A spokesperson for the Hong Kong Stock Exchange (HKEK) called the alleged hesitation of Bitmain around the Initial public offering rumors. According to reports, the spoke person did not comment on the details and verification on the firm’s IPO status stating that HKEK does not regard and comment on rumors.

Reports On IPO Hesitation

The cryptocurrency and Blockchain media had reported previously that there were some hesitations towards the exchange hosting its IPO. The reports stated that this hesitation was because of the conditions of the market surrounding the entire cryptocurrency mining business. Different anonymous sources also claimed that because of the volatility of the cryptocurrency industry, the exchange is hesitant to approve Bitcoin mining companies.

After 2017’s high records, the cryptocurrency market took a nosedive and different cryptocurrency mining firms have found it difficult to bear. According to different reports, done of these forms have started selling off their mining equipment.

These mining equipment have allegedly reached shutdown price which is by the kilogram. Bitmain closer its development center in Israel and dismissed their employees stating market conditions as the reason.

Over the past months, the Bitmain IPO has become the subject of confusion and controversy amongst crypto enthusiasts.

Different companies that were allegedly supposed to be investors in the firm’s pre-IPO came out to report that they are not involved with the company. Temasek which is based in Singapore allegedly committed $560 million to Bitmain’s IPO but they came out with a statement debunking the claims and stating that they have not invested in Bitmain.

Experts and analysts are of the school of thought that Bitmain used misleading and vague wording on its investor deck when listing their investors ahead of its alleged IPO. Another company that was listed in the pre-IPO was DST Global as completed.

This company confirmed that they have never invested in Bitmain and that the allegations are false. SoftBank, which is the largest Uber shareholder also denied involvement in Bitmain’s offering. The news of the $5 million class action lawsuits against Bitmain broke in November.

This firm was sued for allegedly using it’s customer’s devices to mine cryptocurrency for its benefit. The lead plaintiff, Got Gevorkyan stated that the long initialization process of the Basics sold by the firm has the hardware mining at full capacity at the expense of the users. A number of people are concerned about this firm’s IPO plans.

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