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

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

In accordance with authorities enterprise registration knowledge updated on Jan. 30, Xiangfu Liu will now not function a board member on the Hangzhou-based Canaan Inventive – a task he had served since 2013.

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

Canaan Inventive didn’t reply to requests for remark. However the particular person near the corporate advised CoinDesk that Liu left his function as a result of disagreements with the corporate’s general technique.

Particularly, Canaan Inventive’s administration needed to proceed constructing the corporate as a pure-play producer of chips for crypto mining and synthetic intelligence. In contrast to rival producer Bitmain, Canaan doesn’t mine crypto itself or run mining swimming pools, and the management needed to maintain it that method, with a view to justify the corporate’s sustainability for an IPO, the supply stated.

Nonetheless, Liu, who has a background in pc science, believes {hardware} and software program shouldn’t be separated solely within the blockchain business, that means corporations that make mining gear mustn’t reduce themselves off from mining farms and pool companies, the supply stated.

Main shareholder

However, Liu, 35, stays a considerable shareholder of Canaan Inventive. In accordance 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 marketing, and he owns about 17.6 p.c of Canaan’s whole shares. In whole, the three co-founders management over 50 p.c of the agency.

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

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

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

Canaan Inventive picture from CoinDesk’s archives.

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