Ongoing layoffs at cryptocurrency mega-firm Bitmain could start a fresh wave of selling in Bitcoin Cash and Litecoin markets, according to prominent crypto investor Kyle Samani.
The cryptocurrency-focused venture capitalist said in a tweet that the Bitcoin mining giant is — if rumors are true — running out of money to continue its operations across mining and blockchain development. The financial scarcity has led the Chinese firm to downsize its workforce, reportedly by 50 percent or more. And to further meet its ends, Samani said Bitmain would likely dump its crypto stockpile, which includes a massive number of Litecoin and
Bitcoin Cash tokens.
Samani’s bearish theory is based on Bitmain’s alleged financial report which was leaked in August this year. If genuine, it revealed that the company was holding close to 931,000 Litecoin (LTC) and 1 million Bitcoin Cash (BCH). According to the current rates, Bitmain must be holding circa $28.6 million in LTC and a whopping $177 million in BCH. The company, up to the time of this writing, has not verified the leaked financial document.