Bitcoin Cash (BCH) staged an unlikely comeback September 27, rising almost 25 percent after news mining giant Bitmain had finally filed for an initial public offering (IPO).
BCH Hits Multiweek Highs
Data from Coinmarketcap shows BCH [coin_price coi=bitcoin-cash] beating out competition from all of the top twenty cryptocurrency assets for the 24 hours to press time, hitting $564 – its highest value since September 5.
Bitmain’s public flotation had been widely anticipated since leaked documents about its pre-IPO investor deck sparked controversy over both its and Bitcoin Cash’s perspectives.
As Bitcoinist reported, the company appeared saddled by a combination of poor sales performance in Q2 this year, as well as the crash in the value of its huge Bitcoin Cash holdings which it had purchased with Bitcoin (BTC).
Commentators similarly feared that illiquid BCH markets could spell disaster for Bitmain and that the IPO could be an attempt to navigate its way out of financial oblivion.
Despite Thursday’s rises, BCH is still down almost 80 percent from its all-time highs around $4,100.
Industry Digests New Bitmain Figures
Reacting to the price performance on social media, traders were raising the same warning flags over Bitmain, arguing BCH’s gains would prove temporary.
“I’d sell now if you bought at the bottom,” one well-known trading account on Twitter advised.
This week has also seen sudden moves from Ripple (XRP) [coin_price coin=ripple], which gained an unprecedented 65 percent within a matter of days on what appeared to be anticipation of the company’s xRapid payment network going live in the coming month.
Copycat moves appeared from Stellar (XLM), Tezos (TEZ) and others.
Bitmain’s IPO will take place in Hong Kong, while the company has not yet disclosed information about how much it plans to raise from the flotation.
Despite previous misgivings, the latest data from the company suggests first-half profits were around $742 million, a ninefold increase on 2017.
What do you think about Bitcoin Cash’s performance? Let us know in the comments below!
Images courtesy of Shutterstock