(C) Reuters. Down 70% in the Past 3 Months, is Now a Good Time to Scoop Up Shares of The9?
The price of China-based crypto mining company The9’s (NCTY) stock has plummeted over the past three months due to China’s recent crypto crackdown that is designed to discourage mining activities. In fact, as the country extends its crypto ban to include financial institutions and payment companies that offer crypto trading services and to bolster its digital yuan, we think NCTY’s stock could witness a further pullback. Read on.Based in Shanghai, China, The9 Limited (NCTY) is engaged primarily in cryptocurrency mining. The company also operates in licensed mobile games and TV games. Its shares have gained 77.7% over the past year because of important cryptocurrency mining deals it has made. However, NCTY’s stock price has tumbled 69.9% over the past three months, following the rapid price decline of the most popular cryptocurrency Bitcoin (BTC).
As Beijing intensifies its clampdown on virtual currency mining and trading, crypto stocks are getting hammered. With China launching its digital yuan, which will not accommodate user anonymity, and positions it for international use, it could be challenging for crypto miners like NCTY to regain their momentum in the near term.
NCTY is currently trading at $13.15, 85.3% below its 52-week high of $89.20. And since the regulatory clampdown on cryptocurrencies is expected to continue building in the coming months, the company’s growth prospects look bleak.
Down 70% in the Past 3 Months, is Now a Good Time to Scoop Up Shares of The9?
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