Ebang International Opens an Exchange Who Gives Whom Blood Transfusion?

On April 5, the mining machine manufacturer Ebang International announced that its cryptocurrency exchange EBONEX was officially launched, and qualified investors can register and trade. According to the official website of EBONEX, the exchange has supported three businesses: currency trading, leveraged trading, and depositing interest.

In June last year, Ebang International officially landed on Nasdaq, and immediately announced that it would expand its encrypted asset trading business. Four months later, it began to register and acquire local companies in Australia, New Zealand and other countries, and entered the testing phase of the exchange on December 31, and is expected to go live in the first quarter of this year.

Ebang International launched the exchange in order to expand revenue growth with new business. At the beginning of the listing, this industry was injected with the expectation of increasing revenue. It probably did not expect that the impact was coming to it, especially the supply chain shortage caused by the epidemic for mining machine manufacturers.

It was not until March this year that Ebang International completed the design of the 6nm mining chip. In January of this year, the 5nm mining machine chips of Bitmain and Jianan Zhizhi have entered the tape-out stage. The internal and external difficulties of the mining machine business and the bull market in the encrypted asset market may be one of the reasons for its continuous promotion of the exchange business.

However, the exchange track has long been a red sea, and EBONEX wants to transfuse blood for Ebang International, and the task is very arduous.

The chairman of US stock mining machine giant Ebang International reported to the China Securities Regulatory Commission that Huatie Emergency Response: According to news on August 8, Ebang International, one of the world's three major bitcoin mining machine manufacturers, held a press conference this afternoon, claiming that "Huatie Emergency Response Suspected of three 'crimes' of serious breach of trust and disclosure, financial fraud, and the actual controller's alleged huge amount of position embezzlement and hollowing out of the listed company's assets." Hu Dong, chairman of Yibang International, said, "The company filed a complaint with the China Securities Regulatory Commission, the Shanghai Stock Exchange and Zhejiang on August 6. The Provincial Securities Regulatory Bureau publicly reported the Huatie Emergency Response in real name, and has sent relevant materials, so please pay attention to the regulatory authorities." In 2018, Yibang signed a 403.2 million yuan mining machine sales contract with Xinjiang Huatie, a subsidiary of Huatie Emergency Response, after which a dispute arose between the two parties . (Financial Associated Press) [2021/8/8 1:42:01]

The EBONEX exchange is officially open for business. The three products of currency trading, leveraged trading and deposit interest are listed on the official website. The encrypted assets supported by each section are limited.

On EBONEX’s currency trading area, 15 mainstream currencies such as BTC and ETH have been listed; the leveraged trading area supports four assets: BTC, ETH, LTC and EOS; the deposit and interest area currently only supports BTC, and the first phase of 100 BTC is currently The subscription has been completed, with an annualized rate of 6%.

Yibang International’s opening rose by more than 30%: According to the market, the stock price of Yibang International broke through the $10 mark immediately after the opening of the U.S. stock market, reaching a maximum of $11.24. After that, the increase narrowed, and the current increase is still more than 30%. According to previous news, Ebang International may launch bitcoin mining services. [2021/2/18 17:25:05]

Compared with mainstream exchanges with hundreds of currency pairs and complete contract derivatives, EBONEX is a newcomer. However, Ebone International, a US listed company, stands behind it.

Interestingly, the share price of Yibang International rose and fell after being stimulated by the news of "launching the exchange". Flush data shows that on April 5, Ebang International’s stock opened at US$7.51, a 6% increase from the previous day’s closing price of US$7.03, but closed at US$6.53 that day, an 11.5% decrease from the previous day. The market reacted to Ebang International's opening of an exchange, but it did not overreact.

Ebang's share price fell during the release of news of the progress of the exchange

Conceptual stocks in the blockchain listed in the United States rose more and fell less, and Yibang International rose by 14.71%. Canaan Technology rose 7.58%, Renren rose 0.55%, Secoo rose 2.64%, Xunlei rose 10.31%, Cheetah Mobile fell 1.45%, Lanting Jishi fell 3.33%, China Online rose 4.62%, and Ebang International rose 14.71%. [2020/12/17 15:26:54]

After all, Yibang International has released the news of the opening of the exchange sporadically for almost a year, and now it is considered a good news. In June last year, Ebang International landed on Nasdaq, and immediately revealed to the market three directions for maintaining revenue growth—continuing to manufacture bitcoin mining equipment; establishing a cryptocurrency trading platform; entering the mining industry.

Expanding revenue sources in the Bitcoin mining industry is the industry for this mining machine manufacturer, and opening a cryptocurrency trading platform is a new path. In the currency market, the exchange is the leading industry, which often means "money scene". People who pay attention to Yibang's stock price have watched it for nearly a year.

In October last year, Ebang International gradually released the progress of the layout of the exchange. On October 14, it announced that it had acquired a local financial brokerage and wealth management service financial company in New Zealand to establish a local digital asset financial service platform; on October 22, it established a wholly-owned subsidiary in Australia, and According to the public, the company will serve as part of Ebang International's growth strategy to establish a digital asset financial service platform that is in preparation.

Ebang International Announces IPO Terms, Plans to Raise $106 Million: Bitcoin mining company Ebang International announced the terms of its IPO today. In the latest filing, the company chose Nasdaq as the listing exchange and added Prime Number Capital as an underwriter. The company plans to issue 19.3 million shares at a price of $4.50 to $6.50, intending to raise $106 million (up to $125 million), under the ticker symbol "EBON." It is reported that Yibang was established in 2010 and achieved revenue of US$109 million in the 12 months ended December 31, 2019. (Nasdaq)[2020/6/17]

As a result, in October when Yibang International released exchange news intensively, its stock price did not rise but fell, from a high of US$11.59 on October 13 to US$8.96 at the end of the month, and then continued to decline until December 14. At the bottom of 3.94 US dollars, it is almost the lowest price since its listing.

You know, October last year was the starting point for Bitcoin to break through the upward trend of $10,000, and it has never fallen below this price since then. However, Ebang International, which produces Bitcoin "shovels", has bottomed out in the stock market, and the same is true of Canaan Yunzhi, another listed mining machine manufacturer. One background is the impact of the global epidemic on the real economy. Last year, TSMC and other mass-produced chip companies experienced a shortage of manpower and production materials. The poor supply chain dealt a severe blow to these two mining machine manufacturers, which was finally reflected in the stock price.

Dynamics | Except for Bitmain, the listing status of Canaan Intellectual Property and Ebang International has expired: In 2018, the top three mining machine manufacturers in the market, Bitmainland, Canaan Intellectual Property, and Ebang International, started their IPO journey in Hong Kong, but Now, except for Bitmain, the listing status of the remaining two has expired. The person in charge of the public relations department of Bitmain revealed that the company is still actively communicating with the Hong Kong Stock Exchange on listing matters. According to people familiar with the matter, the Hong Kong Stock Exchange is reluctant to approve the IPO application of bitcoin mining equipment manufacturers, especially the large fluctuations in cryptocurrencies in 2018 have made the Hong Kong Stock Exchange more cautious about the listing of such mining machine manufacturers. (Securities Times) [2019/1/25]

Ebang International's eagerness to open an exchange after its listing may be related to the impact on its main business. According to the data of f2pool, currently Ebang International’s Yibit mining machine has the strongest computing power E12+, but its 50T computing power ranks outside the 40th among all brands of mining machines.

It was not until March 17 this year that Ebang International announced that it had completed the design of the 6nm ASIC chip for the Bitcoin mining machine, which has not yet been put into production. In January of this year, Ebang International’s two major competitors, Bitmain and Canaan Yunzhi’s 5nm chips, were already in TSMC, which means that Ebitminer still lags behind Antminer and Avalon in technology.

In such a situation, it is not difficult to understand the motivation of Yibang International to rush into the exchange track.

Up to now, Yibang International has not announced the financial data since its listing last year. However, on April 1, it announced the issuance of 14 million Class A shares with a 5-year period, priced at US $ 6.10, and plans to raise US $ 84 million. The announcement shows that in addition to expanding its cryptocurrency mining and mine business, these net funds also include the establishment and operation of cryptocurrency trading platforms.

Financing from additional stock issuance in the secondary market, and using part of the funds to prepare for the establishment of a trading platform, Ebang International's financial report for the past year may not be very good.

On the day EBONEX was launched, Hu Dong, chairman and CEO of Ebang International, commented in the announcement, "The launch of the cryptocurrency exchange business will not only expand the revenue source of our cryptocurrency business, but also optimize our blockchain industry chain. development of."

In the currency circle, the exchange is considered to be the only track with a stable profit model, but there is never a shortage of entrepreneurs fighting here. In 2018, thousands of companies fought against each other. Since then, few companies have survived the bear market and kept growing. Among them, MXC Matcha is the only one that stands out. Since then, FTX, the dark horse that emerged from the contract track, is now hailed as "Little Binance" by the industry.

As of April 6, the exchange data collected by Coingecko shows that there are currently 395 centralized exchanges in the market, of which 305 have users trading.

Ebang International plans to take a share of the trading market, but it has also stepped into a track that already has thousands of troops. Huobi and OKEx dominate the domestic market, while Binance and Coinbase are the top two in the world, and behind them are more than 300 platforms with their own users.

From the perspective of EBONEX's business sector, it still belongs to the centralized exchange track. In order to break through the ceiling, the powerhouses of centralized exchanges are taking advantage of the DeFi trend and turning to the decentralized ecology of the public chain.

EBONEX Homepage

At present, EBONEX only accepts qualified investors to register and trade, which is likely to be subject to the compliance requirements of listed companies to carry out encrypted asset business. Based on this, the outside world believes that the advantage of EBONEX lies in its compliance, which has a higher degree of compliance and is more likely to be recognized by the market.

Then, Ebone International’s “pro-son” EBONEX can even target Coinbase, a quasi-listed encrypted asset trading platform. Due to restrictions and compliance, the latter’s ability to make money is not as good as the HBO Big Three with various currencies and complete spot and derivative products.

Even Bakkt, a compliant bitcoin futures trading platform under CME Group, has a trading volume far behind that of native exchanges in the currency circle. On April 6, Bakkt’s 24-hour trading volume was 67 million US dollars. At the same time, Binance, which ranked first in 24-hour futures trading volume, was 5.68 billion US dollars.

Compared with the native exchanges of the currency circle, EBONEX has the biggest differentiated ecological advantage. It is also Ebone International. This mining machine manufacturer has always maintained the business of the mine and served the miners. However, compared with ordinary investors, miners' demand for financial instruments is more inclined to hedging. At present, EBONEX, which can directly meet the needs of Yibang miners, only has spot leverage business, and there are no futures and options that are more beneficial to miners. Friendly financial hedging tool.

Whether it is product or ecology, the initial establishment of EBONEX is not a small challenge, and it faces many powerful enemies. Ebang International has raised money for EBONEX from the secondary market, but when this new exchange will be able to make a real blood transfusion for "pro-father" may still be a question mark.

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