Ebang International Holding, Inc. is accused of deceiving investors into pouring over $100 million into its initial public offering by misusing the offering proceeds and inflating its sales report.
Block reward mining equipment maker Ebang International Holdings Inc. has launched the Ebonex digital currency exchange, which will only cater to qualified investors initially.
Besides using its own mining machines, Ebang plans to use mining machines purchased from other manufacturers and leasing computing powers from other mining farms.
The Nasdaq-listed company has completed internal testing of its digital currency exchange and will soon begin public testing leading up to an official launch.
Ebang has announced an interest in acquiring a New Zealand financial company and to set up a digital asset financial services company.
In a document reportedly given to the news outlet, officials suspended the industry giants from participating in energy trading in the region. They can no longer enjoy generous electricity discounts that come from the liquid energy marketplace provided by the Inner Mongolia Power Group, a state-owned energy trading firm.
Also allegedly on the list is the Inner Mongolia Branch of China Telecom, suggesting the telecom giant may also be involved in digital currency mining activities in Inner Mongolia.
Kevin Pan, Founder/CEO of PoolIn, said the policy would have some impact on the industry, likely raising the electricity rate by $0.014 per kilowatt-hour (kWh). While this might seem negligible, it means a significant increase in operational costs for energy-intensive BTC mining activities.
The recent policy change came after region-wide on-site inspections in late 2019. Official discovered that some purported big data and cloud computing companies in the region were just digital currency mining farms in disguise. These firms attempt to qualify for electricity perks by disguising themselves as eligible entities.
Is this another indicator that the block reward mining sector is in the midst of a death spiral?
The BTC mining industry has been in a gradual collapse since this year’s Bitcoin halving. Block reward miners can no longer kick the can down the road when it comes to their future. They must decide if they will embrace and advance enterprise adoption or continue operating based on the house of cards that is the BTC financial markets." title="BTC heavyweights lose access to Inner Mongolia’s cheap power: report" />
Industry titans Bitmain and Ebang were among those listed that felt the new policy initiative's sting, according to recent reports.
Ebang has established a wholly-owned subsidiary in Singapore to prepare for setting up a regulatory-compliant digital currency exchange.
Ebang went public on a United States stock exchange at a time when U.S. sentiment around Chinese companies is at an all-time low.
Like Canaan, which raised $90 million in its 2019 public listing, Ebang feels the U.S. market offers them the best chance for expansion.
Nasdaq will be making it more difficult for foreign companies, including blockchain firms, to list on its exchange.
The U.S. Senate took steps toward forcing Chinese companies to adhere to transparency rules or risk losing access to U.S. stock exchanges.