Tuesday, February 19, 2019

Mining misfortune 😫

February 19, 2019

Bitmain Posts $500 Million Loss in Rough Third Quarter

Chinese mining giant Bitmain struggled through the third quarter according to a new CoinDesk report.

In a nutshell, the firm...

Brought in revenues of $200 million
Had a net loss of over $500 million
Lost $100 million in crypto holdings

Those numbers are a long shot away from Bitmain's first half of 2018 when it posted $2.8 billion in revenue and $1 billion in profits.

Misfortune in mining

The losses stem almost entirely from rough market conditions.

With miners making minimal profits right now, Bitmain hasn't had much luck selling its newly developed (and more expensive) equipment.

According to ASIC Miner Value, only one of Bitmain's Bitcoin miners, the Antminer S15, is actually profitable at this time.

Pre-IPO struggles

While the financials haven't been released publicly because of Bitmain's pending initial public offering (IPO) in Hong Kong, they are no help to the situation.

Previously, officials overseeing the listing at the Hong Kong Exchange (HKEx) shunned the crypto industry for its high volatility.

Now, with more evidence of a shaky future, HKEx may find Bitmain to risky for investors.

TIP

What to Look for in Scam ICOs, FBI Weighs In

In an interview with Netherlands-based news site Paypers, the Federal Bureau of Investigation (FBI) shared a number of red flags to look for before investing in an initial coin offering (ICO).

You should always watch out for...

False team experience
Fake traction or growth
Projects without physical addresses
Unrealistic and promised returns

In addition, investors should always understand which country's regulations the project is operating under since limitations can vary widely.

The FBI shared:

"Like any investment product, rates of return can never be guaranteed and if it sounds too good to be true, it probably is."

BITCOIN

Out with the Like, in with the Lightning Tip

Twitter users are now tipping with Bitcoin lightning payments when the tweet is just too good for a like or retweet.

Thanks to the startup Tippin, a Google Chrome extension is now available.

After downloading, a tiny lightning bolt appears next to the like and retweet symbols that users can click to reveal a wallet address.

Less big, more small

The lightning network is making waves as micropayments splash back onto the Bitcoin scene after years of network fees that were too large.

For Tippin, it's just what the startup needed to bring its vision full circle.

Tippin engineer Sergio Abril told CoinDesk:

"In my opinion, tipping is going to be incredibly popular with lightning network; It's the first time we can send small amounts almost at no cost, and we can do it incredibly fast."

BITS

But wait, there's more...

💰 Seoul, South Korea is looking to invest more than $1 billion in blockchain and fintech startups by 2022.
🤝 Coinbase has acquired the blockchain intelligence startup Neutrino but it will continue to operate as a standalone business.
🔒 BitGo is offering $100 millionn in crypto insurance through the Lloyd's of London insurance market.

MEME