Ex-Bitmain CEO Launches New Crypto Venture Called Matrix

Jihan Wu, co-founder and ex-CEO of Bitmain, is reportedly launching a new crypto venture called Matrix as early as next month, according to a report by The Block on June 5.

According to a source that’s cited by The Block, Matrix is expected to become the world’s biggest OTC desk and asset-manager overnight.

Wu and his team are purportedly in conversation with prospective clients globally, and they already know that Matrix’s biggest customer will be Bitmain, the giant Bitcoin mining company.

Therefore, it’s being speculated that Matrix will offer custody and lending services to Bitmain and receive a liquid pool for its over-the-counter (OTC) offering in return. If that’s the case, then Matrix can offer lower crypto prices because of high levels of liquidity and will benefit immensely from their competitive advantage.

Moreover, the Block reports that it remains unclear what role Wu will have at Matrix, and whether or not the platform will be allowed to operate in China due to the nation’s harsh history on crypto-related services.

Regardless if it is allowed or not, one source told The Block:

“This [Matrix] is going to make Asia the new center of gravity for crypto OTC.”

If the Matrix OTC platform becomes as big as sources say, will it acquire a lot of Bitcoin’s supply and result in higher prices on exchanges? Let us know what you think in the comment section below.