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As the world’s largest cryptocurrency mining company Bitmain Technologies is filing for an initial public offering (IPO) hoping to raise $18 billion on the Hong Kong Stock Exchange at a market capitalization of $40 to $50 billion, observers are already sending potential red flags to the investors.

According to documents obtained earlier this week by CoinDesk, Bitmain’s proposed public offering could end up being the largest in history.

However, in his tweet on Sunday, August 12, Samson Mow, the CSO of Blockstream, points to the fact that in the last three months Bitmain sold most of their Bitcoin worth half a billion USD for Bitcoin Cash.

The first column, BTC quantity from EOY 2016 to 2017 drops from 70k coins to 35k coins. Doesn’t reveal mined BTC additions from 2017 because they sold off BTC by end of year. What this says to me is they sold entire 2017 mined inventory + 35k 2016 coins to support Bcash peg. Rekt https://t.co/ZZasSuwSri

— Parabolic Trav (@parabolictrav) 12 August 2018

Samson Mow also says that hadn’t Bitcoin Core developers found and disclosed a critical Bitcoin Cash consensus vulnerability, it could’ve wiped a billion dollars off Bitmain’s balance sheets.

The vulnerability in question was initially discovered in April 2018 by Bitcoin Core developer from MIT Media Labs Cory Fields. Referred as “SIGHASH_BUG”, it could potentially result in a chain split making it completely impossible for users to make transactions.

“A successful exploit of this vulnerability could have been so disruptive that transacting Bitcoin Cash safely would no longer be possible, completely undermining the utility (and thus the value) of the currency itself. Instead, the vulnerability was fixed without incident, and publicly disclosed on May 7, 2018,” Cory Fields wrote in a blog post.

Bitcoin Cash is a cryptocurrency that is distinct from and incompatible with Bitcoin. It is named as such because it is derived from Bitcoin. The now-fixed bug only affected Bitcoin Cash; the only relation to Bitcoin is the similar name.

Samson

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