New crypto index for performance

Chinese cryptocurrency mining giant Bitmain has launched a new digital assets index. The gauge will track the performance of the 17 largest cryptocurrencies by market capitalization, denominated in US dollars. The coins in the basket currently are: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), EOS, Ethereum Classic (ETC), Litecoin (LTC), XRP, Dash, IOTA, NEO, Monero (XMR), Cardano (ADA), Tron (TRX), Icon (ICX), Lumens (XLM), Zcash (ZEC), and OmiseGo (OMG). Bitmain added that the index is wholly owned by Bitmaintech Pte. Ltd. and is evaluated monthly by the Bitcoin Index Operations Committee to ensure that the index methodology and index weights are “as updated and representative as possible”.

Chinese firm releases indices for altcoin

Chinese cryptocurrency mining giant Bitmain released several price indices. The Bitmain Crypto Index (BCI) comprises real-time spot price reading which refreshes every second, along with a daily reference price. The spot index covers the 17 largest cryptocurrencies by market cap. The product was developed to provide institutional and retail investors with a transparent, timely, methodology-based, and investable benchmark of the most active cryptocurrencies traded globally. It is aiming to track the largest assets for both institutional and retail investors. BCI forms the latest branching out for Bitmain as the company undergoes a significant period in its history.

Influencing – Crypto market and hardware sales

The dropping growth patterns in cryptomarkets has had a hard hitting impact on the hardware manufacturers. This negative growth has shown low purchase patterns of mining grade hardware. The miners managed to reek profits of around 4.7 billion USD the first half of this year. However, the small miners who don’t have exquisite rigs suffered from heavy losses recently. They shut down and left an impact on the manufacturers. AMD‘s representatives published reports of drop patterns in their sales analysis. Nvidia and Bitmain published the same sort of reports. 2017 was a gold rush for these hardware junkies but things are not the same currently.

Bitmain Firing 80% Workforce is Bad for Bitcoin Cash and Litecoin

Kyle Samani, the co-founder of Multicoin Capital, a crypto fund, warned in a Tweet that Bitmain would liquidate its crypto-assets to accumulate fiat-funds for its business operations. The prominent analyst cited recent media reports that have accused the Beijing company of laying off half of its staff. Among the fired – as reported – is a team that was working on the development of a Bitcoin Cash client.

According to a leaked financial document surfaced in August this year, Bitmain currently holds 930,932 LTC (~$28.6m), 1,021,316 BCH (~$176.7m), 22,082 BTC (~$83.3m), 312,424 DASH (~$26m), and 1,097 ETH (~$142k) tokens. At press time, the fiat-equivalent of Bitmain’s entire crypto asset portfolio amounts to be near $315.5 million.

Bitmain raised $400 million from a pre-IPO funding round led by Sequoia Capital. The company currently holds a 67% share in the market for bitcoin mining equipment, and it provides about 60% of the mining industry’s entire computing power.