What occurred
Shares of Ebang Worldwide Holdings (NASDAQ:EBON) rose sharply on Thursday after the corporate introduced a brand new product that can permit customers to concurrently mine two well-liked cryptocurrencies, Litecoin and Dogecoin. On the shut, the inventory was up nearly 14%.
So what
It’s possible you’ll be accustomed to bitcoin, however it’s simply one of many hundreds of cryptocurrencies. Ebang manufactures {hardware} largely used for mining bitcoin, however in line with as we speak’s announcement out of Hangzhou, China, it has designed a chip that may mine Litecoin and Dogecoin on the similar time.
Picture supply: Getty Photographs.
During the last three months, the value of Litecoin has gone up nearly 200%. Throughout that very same interval, Dogecoin is up a whopping 1,400%. It is rapidly turning into a crypto-trader favourite given it is price simply a few pennies and merchants can subsequently purchase loads of tokens.
It is the identical reasoning individuals generally use when shopping for penny stocks. However the level is, these two cryptocurrencies are more and more well-liked, aligning Ebang’s newest product with that pattern. That is why the inventory is up as we speak.
Now what
Traders must be cautious to not overstate the innovation right here for Ebang Worldwide. Litecoin and Dogecoin are each Scrypt-based cryptocurrencies, which allowed them to merge mining means again in 2014. So it is not like Ebang is enabling one thing that is by no means been achieved earlier than; simultaneous mining of Litecoin and Dogecoin was already a factor.
Slightly, this new chip will merely permit Ebang to promote a brand new line of mining gear, and one which administration says is “superior to different mining machines presently available on the market.”
In fact, you’d count on administration to be happy with its merchandise. However solely time will inform if this may translate to significant income development in the long term.
This text represents the opinion of the author, who might disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one in all our personal — helps us all assume critically about investing and make selections that assist us turn out to be smarter, happier, and richer.
