The effect of the ongoing bear market on the crypto industry is refusing to budge despite some intermittent cues of bullish sentiments appearing now and then. Bitmain Technologies, a company which is involved in making equipment used in cryptocurrency mining, has announced on Tuesday that it has put on hold its plan to go public with an IPO indefinitely. The company has cited a plunge in the value of cryptocurrencies behind this move to put its initial public offering on the back burner. The expiration period given to the company for an IPO lapsed on Monday and next day Tuesday; the company has announced that it has postponed its initial plan to list on the stock exchange of Hong Kong for now.
In an official news release, Bitmain confirms that it has applied for listing to Hong Kong stock exchange in September 2018 and the expiration date of 6-months has elapsed now. The blockchain and cryptocurrency industry has a vast potential, but at the same time, the nascent nature of this industry will require some more time to establish and prove its value to the stakeholders.
After attaining exorbitantly high value in 2017, most of the cryptocurrencies fell more by 90% in the year 2018. Like many other companies, Bitmain was riding high on the wave of cryptocurrency in 2017 though took a hit as the bear market started tightening its noose around the industry. Just to give you a perspective in 2018 alone, cryptocurrencies lost more than $600 billion in valuation which forced many companies to reconsider their future growth and expansion plans.
Despite this recent development, Bitmain said that it would continue to invest in the crypto and blockchain industry by funding various initiatives taken by open-source developers. The company emphasized that the people and organizations who are in sync with their philosophy and mission will continue to get funding support without any kind of strings attached. So that you know, the value of Bitcoin settled at around $3,900 which largely remains the same throughout 2019 but is down around 80% compared to its highest amount of $20,000 in December 2017.