Is there value in $EBON?

Hey all,

Does anyone see value in $EBON?

It was one of the biggest gainers last week, up 35%.

The financials are on par with a glamour (promise of rainbows & sunshine) growth company. But could there be more to $EBON?

ABOUT THE COMPANY:

$EBON (Ebang Intl Holdings) core business is crypto mining rigs (small plug n' play boxes that mine crypto-currency and as the company declares, consume less power than their counterparts), recently they announced that they were also moving into the exchange business (such as Coinsbase, Coinspot, etc) and sentiment appears positive in their space for them and their products.

CATALYST:

With the currently Crypto goldrush, this company is essentially selling shovels to miners.

BTC (and other crypros) are clearly gaining momentum, naturally many are divided on this space. Some see a lack of intangible value, whilst the bulls see Crypto as an integral part of our future.

Their recent announcement of moving into the Crypto exchange business was most likely the catalyst behind the 35% increase in price, the exchange business will add another (more lucrative) segment to their business.

CASE FOR $EBON:

Personally, last week, a number of banks in our region were down, the institutions didn't announce 'why', but many suspect it was linked to another attack by hackers (like Solarwinds, or the recent attack on Microsoft).

I wondered if we were on a currency (Bitcoin or similar) which implicitly has been designed to be secure against this type of manipulation, on a public blockchain, events such as this would not occur.

As public sentiment shifts in greater numbers (possibly driven by greed) to adopt Crypto, $EBON will only see their business strengthen, in sales of their products and growth in the exchange business.

CASE AGAINST $EBON:

Naturally, the powers that be (banks, govts.) are fearful of this type of store of value (and rightfully so), simply because they cannot create more by the push of a button. Hence, BTC (or another blockchain Crypto) are inconvenient and will tax resources (power, admin, tech) to obtain more 'value' when governments require it. Hence taking us back to a Gold standard (backed by a physical store of value such as Gold) and in the case of Bitcoin by proof of work.

The IOU's type of fiat currency, as many argue, works well. Governments can create as much (or little) store of value as they desire, back by their country's financial output (GDP). When they step out of equilibrium, the currency increases or decreases in value, which they can control through levers such as Q.E. (Quantitive Easing). These will not be as easily available on a BTC blockchain (digital store of value, obtained only by proof of work) .

Companies like $EBON are operating in a space that will only see headwind from institutions and governments globally.

Based on its declared financials, $EBON is overvalued and will see slow growth as Crypto currency may largely remain (or be exiled) to the fringes.

CONCLUSION:

$EBON, at least in the short-term, has the potential to see growth (increased sales) fuelled by the current Crypto goldrush & their move into the exchange business.