Ebang International Holdings Inc (EBON) Stock price decreased by 2.44% in the current market session on Wednesday, and 30% since the start of April, as investors who had shorted EBON Stock blamed the company for being a “China Hustle” masked as a Bitcoin (BTC) mining play. Hinderburg, The short seller responsible for this statement further said “yet another cautionary tale for inexperienced retail investors enthused by anything crypto-related” which plummeted EBON shares immensely.
The short seller also said EBON generated approximately $374 million by various offerings and directed a gigantic proportion of $103 million into bond purchases linked to its underwriter hence the company acting on a self-interest basis and providing no value for the investors.
Why Ebang International Stock Had a surge of 15% Last Month
Stock price of Ebang International Holdings (NASDAQ: EBON) increased by 15.2% in March and soared over 70% at a specified time frame. EBON stock price increased as it initiated its own cryptocurrency exchange. The platform was made as a prototype on March 15 to a particularly selected audience. However, this test developed swiftly, with an official launch being held after three weeks on April 5th.
The company initiated the month by notifying the availability of share dilution stock offering after EBON was accused by Hindenburg of directing company capital and net proceeds of its secondary $21 million offerings to a relative of the CEO. Reduced availability and jurisdiction in the crypto exchange are in some parts of the world could have to do with why EBON stock is falling today
EBON currently has a market capitalization of approximately $950 million, with shareholders currently giving the company a respectable valuation with high expectations however, if the exchange has a hard time in expansion, the valuation of the company will be severely effected with shareholders being skeptical about Ebon Stock value.