In the last 24-hours, Bitcoin Cash (BCH) experienced a 20% surge in its value and was ranked the best performing digital currency in the crypto market.
Within a short period of time, the value of BCH shot up from $440 to $540, a 25% increase at some point. Crypto experts have linked the value gain of BCH on 27th September 2018 to the fruitful Initial Public Offering (IPO) filing of Bitmain with the Hong Kong Stock Exchange. The Reason why Bitmain IPO is the Major Determinant
In August this year, a Bitmain investor deck was made known to the public by an undisclosed employee of the firm. The report revealed the investments of Bitmain in different digital currencies like Ethereum (ETH), Bitcoin (BTC) and Bitcoin Cash (BCH).
The insider revealed that Bitmain had invested in over one million BCH since December 2017, accounting for approximately 6% of the total circulating supply of the coin. Later, crypto analyst Cobra weighed the claim, and this is what they said.
“Bitmain holding 1M+ BCH is a powerful statement that they have skin in the game and put their money where their mouth is. It is a good and calculated move, and it is not wise to underestimate them.”
The Controversy in the Cryptocurrency Sector
The one million plus BCH investments of Bitmain ignited a controversy in the digital currency world as stakeholders begun to point the IPO of Bitmain as a method of liquidating its assets of BCH. However, it only represents $540 million, which is less than 50% of the firm’s quarterly income of $1.1 billion.
On 26th September, Bitmain officially launched its IPO report filed with the Stock Exchange of Hong Kong Limited, which immediately triggered a rise in the value of BCH.
eToro senior market expert, Mati Greenspan, felt that “This spike was definitely caused by Bitmain’s IPO filing,” and that the timing of the filing was impeccable.
The Rise in Investor Confidence
Marouane Garcon, the CEO of Amulet (a crypto-to-crypto platform), observed that huge investments of BCH by Bitmain likely raised investor confidence towards the coin.