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Why did the blockchain demon stock lose its aura in the past?

Time : 04/11/2021 Author : 5s8ia3 Click : + -
        If you want to invest in cryptocurrency but don't want to take risks, buying blockchain stocks is an investment channel. Blockchain concept stocks generally fluctuate with the price fluctuation of bitcoin. The recent rise of cryptocurrency is making a comeback, and blockchain mining stocks such as soslimited (NYSE: SOS) should rise sharply. But the fact is that the trend of SOS is quite weak. Compared with the previous wave of big market (when SOS once rose to $15), the current SOS rise is weak, hovering between $2-3 for a long time. Why is this? It is mainly because a series of negative factors of SOS have affected the investment sentiment of investors, especially American investors, who are now highly suspicious of the status of SOS.
        According to the data, SOS headquarters is located in Qingdao, China. It recently started blockchain business in the United States through a joint venture with niagaraworldwide, a New Jersey limited liability company. Niagaradevelopment will be responsible for providing up to 150MW of power to mining equipment. As we all know, the domestic policy on cryptocurrency is severely cracked down, so this is definitely a move welcomed by investors. SOS is a company involved in many industries. It serves a variety of business lines, including but not limited to rescue insurance and security inspection, big data and cloud computing services. One thing to note is that before the current incarnation, SOS used to be called chinarapidfinance, focusing on P2P lending.
        Now, SOS is trying to position itself as an enterprise supported by American professionals, and its board of directors focuses on cryptocurrency (the same operation as another demon stock BTBT). At the end of February this year, SOS was shorted by Hindenburg research company. Hindenburg claimed that SOS had significant regulatory risks and there was no mining machine at all. Although the company later clarified, it still didn't help. Since then, the share price of SOS began to fall. It should be noted that SOS has changed its auditors every year since 2019, and the auditors have previously expressed qualified opinions on its financial statements. As we all know, after the scandal of otcmkts: lkncy, any financial problems will sound an alarm to foreign investors.
        One of the main problems faced by SOS is the lack of strategic direction. In the past few years, it has often shifted from one form to another, leaving most people confused about its main focus. The company initially applied for listing in 2015, and was finally approved by the U.S. Securities and Exchange Commission and listed on the New York Stock Exchange in April 2017. According to the preliminary business plan, it wants to become the leading market of P2P consumer loans in China. By July 2020, the company was renamed SOS. With the renaming, the focus of business has shifted from fintech to "emergency rescue services". Then in December 2020, SOS said that it was seeking to transform its business operations through the R & D work of Companies in the fields of big data, cloud computing, Internet of things, blockchain and artificial intelligence.
        In January, SOS announced that it had purchased 15645 encryptors. After the press release on February 9 detailed that 5000 mining machines had been received in advance, the share price soared from a low of $3.75 to an intraday high of $15.88. As of yesterday's close, SOS was $2.86 per share, and short selling institutions had already made a lot of money. Blockchain mining stocks actually have several more mature participants than SOS, such as riotblockchain (NASDAQ: Riot) and marathon digital holdings (NASDAQ: Mara).
        Compared with SOS stocks, the focus of these two companies is relatively narrow, which makes them look more like a pure investment in the eyes of investors. However, due to the particularity of the industry in which these companies are located, in fact, no stock can reflect its potential fundamentals. In other words, at present, SOS has faced regulatory risks from both the United States and China. However, in the face of large-scale selling, the speculative nature of SOS is still very attractive. It is only suitable for short-term day traders with high risk tolerance, and must not be regarded as a long-term investment project.
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