In recent days, the Ebang International Holdings (NASDAQ: EBON) stock has experienced considerable selling pressure from investors and consequently suffered declines. However, such falls can often be a buying opportunity for new investors, and hence, it might be a good move to take a closer look at what went down.
Last week, the EBON stock declined last week after a scathing report from Hindenburg Research on Tuesday. It was a short-seller report and in the report, Hindenburg alleged that Ebang has been siphoning off cash from investors.
It is a massive allegation and one that could damage the company’s reputation irreversibly. In addition to that, another factor behind the decline in the stock was the fact that Ebang International did not immediately respond to the short seller report from Hindenburg. Hindenburg alleged that despite having raised $100 million in its IPO, the company keeps raising cash through stock offerings. It has also cast doubts on the products and services that have been touted by Ebang. Investors could consider keeping an eye on any news regarding Ebang over the coming days.
Finance and Entertainment Reporter
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