Bitmain CEO denies rumor about secret ASIC cryptomining

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Bitmain rumors

However, after the Monero network went through a hard fork on April 6, a lot of activity could still be seen on the old chain. Bitmain was soon suspected of using the hitherto unpublished ASIC miners on a grand scale. Now Bitmain CEO Jihan Wu commented on the allegations.

The announcement of a bitmain ASIC miner was viewed with skepticism from Monero circles. Thus one saw the decentralization of the cryptocurrency at risk. The Monero-Hard-Fork took place in early April to thwart the announced ASIC miner. In particular, since ASIC Miners are optimized for a particular proof of work, Monero’s goal with Hard Fork was to change the proof-of-work algorithm.

In the aftermath of the Hard Fork was striking that the hash rate of Monero fell dramatically and the old chain was gemined. Therefore, the Monero community alleged that Bitmain had operated before the announcement of these ASICs with this new technology on the Monero Blockchain Mining.

In an interview with Fortune, Bitmain CEO Jihan Wu denied the allegations that the company had already used its new ASIC miners before publishing:

“No, we don’t do that. As in, sell a second-handed mining rig? If we sell a second-handed mining rig, we would be transparent that this is second-handed. We don’t do mining first and then make the mining rigs old and then sell them as if they’re new. If it was second-handed, we would tell the customer it’s second-handed.”

Bitmain: Mined before announcing the Monero ASICs?

The Hashrate after the Monero Hard Fork suggests otherwise. In the aftermath of Hard Fork, it was noticeable that the hash rate of Monero fell dramatically. In parallel, the old chain was still gemined. It was concluded that these activities had to come from Bitmain’s ASIC miners.

In fact, Monero made involuntary attention due to a variety of bots systems that scraped the cryptocurrency on a large scale. Bitmain does not have to be the only suspect in this case. Currently it is therefore statement against statement. We are curious if this riddle will one day be solved.

image by shutterstock

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