Bitcoin Cash has risen by about 10% from $264 to $284 following a coup at Bitmain, has been settled in favor of Jihan Wu, the prominent BCH supporter and the one now running the biggest bitcoin mining operation. Bitmain is the dominant manufacturer of bitcoin-mining computers, and its equipment was in high demand during the cryptocurrency's boom years. The Chinese company has seen one of its founders return from exile to oust the other.
According to an email dated Oct. 29 quoted by crypto news outlet CoinDesk, Bitmain co-founder Jihan Wu said that fellow co-founder Micree Ketuan Zhan had left the company. Mr Wu had disagreed with Mr Zhan over strategy, with Mr Zhan pushing the company to focus on AI chip development, which has yet to yield significant success.
"Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note." On the sign of possible acrimony, a Bitmain spokesperson declined to comment further.
"Wu is Bitmain's visionary founder and one of the giants of China blockchain. We'll have to see if it works out, but this is a Steve Jobs coming back to save Apple situation," said Matthew Graham, chief executive of Sino Global Capital which focuses on blockchain investments, in an interview with Financial Times.
Bitmain is to now focus back on the crypto space with Bitmain stating to local media. "We believe that under the leadership of Mr. Wu Jihan, Bitian China will return to its original heart, focus on its main business, develop in an orderly and horizontal manner, and become a world-class technology company."
Wu Jihan, for some historical reasons, as it has happened many times in history, was almost driven out of the company that he founded, and Bitmain dropped since then.
His return comes as Chinese president Xi Jinping endorsed blockchain, the technology underpinning bitcoin and other cryptocurrencies, and called for further support of the sector.
With Mr Wu back at the top of the company, he could return it to focusing on bitcoin Cash, which he had advocated in the past. But the move could not put the company in line with Beijing's blockchain push and a central bank issued digital currency.
