Share prices of the Chinese Bitcoin mining firm Ebang has seen its share price slashed 20% on the Nasdaq following damning reports and allegations that were unveiled, revealing questionable dealings and practices.
The share price of the Chinese Bitcoin (BTC) company has continued to fall as the company denied all claims made by a Hindenburg study that it was pilfering money from American investors.
According to the claims from the Hindenburg Research paper, Ebang is accused of being “simply the latest chapter in the ‘China Hustle’ disguised as a Bitcoin mining play.” According to the report, Ebang acquired hundreds of millions of dollars through public offerings in the United States while masquerading as a crypto mining business.
Ebang have made proclamations that they are the “leading Bitcoin mining machine producer,”. However, according to reports, the firm hasn’t introduced a new product since 2019, and its sales have been steadily dwindling since then.
Throughout this week, the share price of NASDAQ: EBON has dropped by 20%. Since its opening on Monday of $6.35, the share price had fallen to approximately $5.00, by the end of Tuesday, presenting a loss of over 20%. Since then, the stock price has stabilised at just over $5.00, leaving its weekly loss of 20% but without further price hemorrhages thus far.
As reported by the Hindenburg article, Ebang foresaw its condemnation for its mining rig company, which was accused of producing inferior devices to competitors in the industry. The company is said to have since twinned itself into Ebonex, a cryptocurrency exchange platform. The EBON market cap has since increased to $922 million, following the initial announcement.
Despite having no online presence, the exchange platform Ebonex unexpectedly rocketed to some of the largest trade levels in the world after just a few months of operation. However, their statistics were not documented on any industry standarised market metric platforms such as CoinMarketCap or CoinGecko, and Hindenburg report has described the entire incident as “just another cautionary tale for novice retail investors.”
Ebang International Holdings Inc. published an official response to the report, claiming that the study was speculative and full of unsubstantiated statements. According to the announcement, Ebang will investigate Hindenburg’s allegations and take the appropriate action to protect its investors.