Crypto mining giant Bitmain was reported to have been converting its Bitcoin Core (BTC) into Bitcoin Cash (BCH), and with the recent developments in the new project called Wormhole, it may not be very difficult to understand why.
Curiously, Bitmain has about 1 million Litecoins and Bitcoin Cash, along with 300,000 Dashcoins as of March 31. The numbers could have increased. Many are speculating as to why the crypto mining giant is hoarding the said cryptos; it possesses about 6 percent of all the world’s total Bitcoin Cash. However, nothing final could be said yet.
What is odd, however, is that it sold most of its Bitcoin Core either for operating costs or for acquiring more Bitcoin Cash, with many experts speculating the latter. As if those were not enough, the firm was said to have developed a project called Wormhole, which is a layer for creating smart contracts on the Bitcoin Cash blockchain, according to Bitcoin.com.
Furthermore, users can make use of the technology to create tokens which could very well represent anything that they want: they can use a token pegged to a specific commodity like gold, or to stocks, bonds, or to fiat currencies such as the US dollar —more or less like a stablecoin.
The Wormhole mainnet was launched earlier this month, where the crypto community can see the list of coins which are available on the platform, as well as the generated Wormhole Cash (WHC). As of the time of writing, there are 179 tokens listed on wh.blockabc.com
Burn ‘Em Down (or Up)
For users to possess Wormhole Cash, they will have to send 1 Bitcoin Cash to a specific burn address, in exchange for 100 WHC. However, they will have to make use of the Wormhole protocol which “ties the metadata information written within a BCH-based OP_Return transaction,” the Bitcoin.com article read. Once the system has recognized the action, it will now issue the WHC tokens to the “burner.”
This is also explained in the platform’s whitepaper, which is originally written in Chinese. Also, the cryptocurrency exchange Coinex allows BCH to be traded into WHC. As of the time of writing, 1 WHC is worth 0.00859 BCH.
Bitmain is yet to explain the peculiar conversion of Bitcoin Core into Bitcoin Cash, especially that it is planning to conduct an initial public offering (IPO) in September, according to CoinDesk. But if the narrative proves to be correct, then we might as well be certain that the crypto mining giant has long been planning a cosmic shift in the crypto world, and Wormhole has a big part in it.
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