14:57Apr 06, 2021MT Newswire
Ebang International's (EBON) shares slumped about 14% on Tuesday after short seller Hindenburg Research accused the company of using capital proceeds to strike "opaque deals with insiders and questionable counterparties."
While the company bills itself as a "leading bitcoin mining machine producer," its claim is not backed by evidence. Hindenburg believes the company has burned through its IPO and secondary proceeds. Ebang's Ebonex cryptocurrency exchange also allegedly reports fictitious volumes.
"Ebang is yet another cautionary tale for inexperienced retail investors enthused by anything crypto-related," Hindenburg said.
I SMELL CAP.
Ebang International's (EBON) shares slumped about 14% on Tuesday after short seller Hindenburg Research accused the company of using capital proceeds to strike "opaque deals with insiders and questionable counterparties."
While the company bills itself as a "leading bitcoin mining machine producer," its claim is not backed by evidence. Hindenburg believes the company has burned through its IPO and secondary proceeds. Ebang's Ebonex cryptocurrency exchange also allegedly reports fictitious volumes.
"Ebang is yet another cautionary tale for inexperienced retail investors enthused by anything crypto-related," Hindenburg said.
I SMELL CAP.