Every time an unknown company announces the sale of their Bitcoin mining equipment, cryptocurrency enthusiasts need to do their own research. A new Chinese company called Ebang Communications is planning to launch the sale of their 12-nm Bitcoin ASIC miner. But since no one has heard of this company, the question becomes whether or not they are legitimate.
A New Chinese Bitcoin ASIC Miner Player Emerges
The Bitcoin mining scene has seen its fair share of fraudulent companies claiming to offer the next generation of hardware. Although there are quite a few legitimate companies out there, their numbers are dwindling rapidly. In fact, consumers have very few options at their disposal right now, but Chinese company Ebang Communications wants to change this situation.
Their new E9 miner is using the in-house developed chips, which are 14nm Bitcoin ASIC chips. Every miner is reportedly running at 6.3 TH/second, and only 5,000 devices will be made available for sale in batch 1. Although Ebang Communications is listed on NEEQ, it remains to be seen if this mining effort has anything to do with this legitimate company.
Even though the vast majority of Bitcoin mining takes place in China, no public listed company has ventured into the mining world. Or to be more precise, no one has attempted to sell consumer-grade bitcoin mining hardware. Once again, it remains to be seen if this offer is even legitimate, to begin with.
Many people will recall Avalon, one of the first Chinese companies to develop and sell Bitcoin mining hardware to the public. Ever since the company shut down, an acquisition attempt was made by Shandong Luyitong Intelligent Electric Company. Unfortunately, that deal was called off due to regulatory concerns. This makes the offering by Ebang Communications even stranger, as they seemingly have no prior experience with Bitcoin mining hardware whatsoever.
It is safe to say that the company will be facing quite a few challenges along the way. Releasing a product that no one has heard of, using ASIC chips that no one has tested before, with no prior knowledge of the industry, is a very gutsy decision. Then again, very few people have trust in these types of offerings, and it remains to be seen how many units will actually sell.
Do keep in mind that none of this means the company has no legitimate intentions. It is hard to trust anyone with no prior reputation in the Bitcoin word, particularly when they claim to offer hardware no one has gotten their hands on for review. Always do your research before making a financial commitment to a mining hardware manufacturer.
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