Bitcoin and blockchain enthusiasts have been looking forward to the release of Kim Dotcom’s new projects. Both Bitcache and MegaUpload 2.0 are rumored to use bitcoin as a payment option, and use blockchain technology for distributed and decentralized file hosting. Unfortunately, it appears both project launches have been delayed by nearly a year, due to some complications as a result of a cash merger deal.
No Bitcache or MegaUpload 2.0 For Now
When Kim Dotcom announced both Bitcache and MegaUpload 2.0, the bitcoin world was taken by storm immediately. Both platforms would make use of bitcoin as a payment option, and use blockchain technology to ensure file hosting would be tamper proof. Moreover, no one would be able to have files deleted through a court order, as there is no centralized file server to speak of.
Both projects gained traction outside of the cryptocurrency world as well. Kim Dotcom’s projects successfully raised their first capital, and plans were set in motion to organize a second round for Bitcache. Even this second round got off to a good start, as a Canadian publicly listed company proposed a cash and stock merger deal. This move would value Bitcache at US$100m, while providing an additional SU$12m in the capital. For a new project looking to get off the ground in 2017, such a deal is invaluable.
Unfortunately, things did not work as initially planned. The Canadian company announced their intentions to the Exchange, where the company is publicly traded. A draft press release was written up and sent to the exchange, informing them of the impending merger. As a result of this impending change, trading company stocks was temporarily halted until they received word from the exchange in question.
As one would come to expect, the exchange was not too pleased with these plans. They demanded “intrusive” information regarding this merger, which made a simple business merger a lot more complicated than it needs to be. Bitcache board members decided this complex process would hinder company growth, rather than help it gain more legitimacy. It appears the stock exchange is biased towards projects involving bitcoin and blockchain. It is also possible they are concerned over Kim Dotcom’s involvement, even though that seems to be unjustified at this stage.
Bitcache is not looking to get caught up in the grinding machine of corporate complexity. It remains unclear if the merger with the Canadian company will continue, but it seems doubtful the merger will go ahead if the exchange platform takes such an aggressive stance. For now, the launch of both Bitcache and MegaUpload 2.0 has been postponed, and a beta launch is expected by the end of the year. A sad development for sure, but it is good to see Kim Dotcom is not giving up his bold plans just yet.
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