BitmainTech Israel, a blockchain research and development center founded by crypto mining giants, Bitmain is shutting down this week according to reports from a news agency, Globes.
The closure is attributed to the crypto market decline which has happened in the last few weeks as well as the whole of 2018. To this end, the Ra’anana subsidiary is firing all 23 workers including Vice President, Gadi Glikberg and will cease operating from this week onwards.
Departing VP, Gadi Glikberg is quoted in the new publication as saying,
“The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”
Bitcoin has lost more than 70% percent of its value from around $19,800 at the start of the year to $3552 at the time of writing this report. The total market cap of all cryptocurrencies has also dropped by nearly $680 billion.
Despite the 2018 market downturn, Bitmain still remains the world’s largest producer of cryptocurrency mining chips and played a huge part during the Bitcoin Cash hardfork which took place on November 15.
The company has also not shut down their blockchain research and development centers in other cities such as Amsterdam and Hong Kong.
CyberVein And Zhejiang University To Promote Blockchain Research
In a counter development, Coinfomania reported earlier today that crypto startup, Cybervein, and a Chinese university, Zhejiang are on the verge of launching a new blockchain research and development center.
So it is clearly a case of one lost and one gained as blockchain technology continues the match to mainstream research and adoption.