Cryptocurrency

Co-Founder Quits Avalon Mining Chip Maker Canaan Over ‘Variations’

One of many three co-founders of Canaan Artistic, maker of the Avalon cryptocurrency mining tools, has stepped down from the Chinese language firm’s management.

In keeping with authorities enterprise registration knowledge up to date on Jan. 30, Xiangfu Liu will not function a board member on the Hangzhou-based Canaan Artistic – a job he had served since 2013.

Additional, an individual accustomed to the scenario stated Liu had left his day-to-day administration position on the producer and his government board member place at its holding firm, Canaan Inc., which unsuccessfully sought an preliminary public providing (IPO) in Hong Kong final yr.

Canaan Artistic didn’t reply to requests for remark. However the individual near the corporate instructed CoinDesk that Liu left his position because of disagreements with the corporate’s general technique.

Particularly, Canaan Artistic’s administration wished to proceed constructing the corporate as a pure-play producer of chips for crypto mining and synthetic intelligence. Not like rival producer Bitmain, Canaan doesn’t mine crypto itself or run mining swimming pools, and the management wished to maintain it that manner, in an effort to justify the corporate’s sustainability for an IPO, the supply stated.

Nonetheless, Liu, who has a background in laptop science, believes and software program shouldn’t be separated completely within the blockchain trade, that means firms that make mining tools mustn’t lower themselves off from mining farms and pool companies, the supply stated.

Main shareholder

Nonetheless, Liu, 35, stays a considerable shareholder of Canaan Artistic. In keeping with the now-lapsed Hong Kong IPO prospectus, Liu co-founded the agency with Nangeng Zhang and Jiaxuan Li in 2013.

Whereas Zhang serves as Canaan’s chief government officer, Liu was primarily in command of the agency’s abroad enterprise technique and advertising, and he owns about 17.6 % of Canaan’s whole shares. In whole, the three co-founders management over 50 % of the agency.

Liu’s departure from the board additionally comes amid latest layoffs at Canaan, the supply stated, declining to reveal their scale.

However Canaan is way from alone in lowering workers, as different mining giants like Bitmain have additionally undergone layoffs in addition to workplace closures, partly as a result of general bearish market circumstances in 2018.

The information additionally comes weeks after a media report that Canaan Artistic is now mulling an utility to go public in New York after its preliminary IPO plan failed as a result of hesitation of the Hong Kong Inventory Trade.

Canaan Artistic picture from CoinDesk’s archives.

Supply hyperlink

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