{"id":222835,"date":"2021-04-09T12:40:01","date_gmt":"2021-04-09T09:40:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ebang-refutes-bitcoin-china-hustle-claims-as-share-price-falls-20\/"},"modified":"2021-04-09T12:40:01","modified_gmt":"2021-04-09T09:40:01","slug":"ebang-refutes-bitcoin-china-hustle-claims-as-share-price-falls-20","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ebang-refutes-bitcoin-china-hustle-claims-as-share-price-falls-20\/","title":{"rendered":"# Ebang refutes Bitcoin \u2018China Hustle\u2019 claims as share price falls 20%"},"content":{"rendered":"

“# Ebang refutes Bitcoin \u2018China Hustle\u2019 claims as share price falls 20% <\/strong>”
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The share price of Chinese Bitcoin (BTC) mining company Ebang continues to fall, while the firm refutes claims made in a Hindenburg Research report which alleged it was pilfering American investors\u2019 cash.<\/p>\n

The Hindenburg Research report<\/a>, published April 6, described Ebang as \u201csimply the latest chapter in the \u2018China Hustle\u2019 disguised as a Bitcoin mining play.\u201d The report alleges that Ebang raised hundreds of millions of dollars through public offerings in the United States under the guise of operating as a Bitcoin mining company. <\/p>\n

The money raised in the funding rounds was reportedly funneled out of the company in \u201ca series<\/a> of opaque deals with insiders and questionable counterparties.\u201d Ebang describes itself as a \u201cleading Bitcoin mining machine producer,\u201d yet according to Hindenburg\u2019s research, the firm hasn\u2019t released a new product since 2019, and its sales have dwindled steadily since.<\/p>\n

Ebang, along with Canaan Creative, is one of only two Chinese Bitcoin mining companies publicly traded on U.S. stock markets. The share price of NASDAQ: EBON<\/a> fell 20% since the start of the week. After trading at $6.35 on Monday, the share price had dropped to $5.00 by Tuesday\u2019s close, equating to 21% losses. The stock has since bounced back to $5.03, leaving weekly losses in excess of 20%.<\/p>\n

The Hindenburg report alleges that Ebang saw the writing was on the wall for its mining rig business, which was said to produce inferior machines to local competitors. The company is said to have then spun itself into a cryptocurrency exchange, dubbed Ebonex. The initial announcement app<\/a>arently boosted the EBON market cap by $922 million.<\/p>\n

Hindenburg researchers claim to have found out that the Ebonex exchange was purchased from a crypto exchange service provider called Blue Helix, which offers \u201cout-of-the-box\u201d exchanges for no money upfront.<\/p>\n

After launching just months ago, Ebonex miraculously soared to record some of the highest trade volumes in the world, despite having no online presence whatsoever. Its allegedly fictitious figures are not recorded on crypto market tracker websites like CoinMarketCap or CoinGecko, and Hindenburg refers to the whole affair as \u201cyet another cautionary tale for inexperienced retail investors.\u201d<\/p>\n

The report prompted an official response<\/a> from Ebang International Holdings Inc, which claimed the review was full of speculation and unsupported claims. The announcement stated that Ebang would examine the claims made by Hindenburg, and take the necessary steps to protect its investors.<\/p>\n

\u201cBased on the review by the Company\u2019s management team, we believe that the Hindenburg Report contain\u00a0many errors, unsupported speculations and inaccurate interpretations of events,\u201d stated the announcement.<\/p>\n

It added, \u201cThe Board, together with its Audit Committee, intends to further review and examine the allegations and misinformation therein and will take whatever necessary and appropriate actions may be required to protect the interest of its shareholders.\u201d<\/p>\n