The9 Ltd. (NASDAQ: NCTY) stock plunged by 11.91% at the last close whereas the NCTY stock price rises by 4.29% in the pre-market trading session. The9 Limited (The9) is a Chinese Internet firm that went public on the NASDAQ in 2004. The9 aspires to be a multi-faceted high-tech Internet organization.
What is happening?
The price of the famous cryptocurrency Bitcoin is rapidly declining. Other cryptocurrencies have fallen in value as a result of the sudden falls, as have stock prices for Grayscale Bitcoin Trust, Ebang International Holdings, and The9 Restricted.
About the time Tesla CEO Elon Musk declared his company will no longer allow the blockchain as a form of payment, Bitcoin went from a small pullback to a complete collapse, citing environmental issues with the Bitcoin mining operation. Coincidentally, the People’s Bank of China (PBOC) is tightening up on digital currency as well. China is now banning its residents from using cryptocurrencies such as Bitcoin as a means of payment, according to Reuters.
The ban on cryptocurrencies in China seems to be the catalyst behind today’s Bitcoin price decrease. For a business like The9, the PBOC update is a significant advancement for investors. Not only can The9 sell bitcoin mining, but it will also offer a variety of blockchain goods and services. Blockchain technology can be used for more than just digital currency transactions. Blockchain can be used for items like inventory control, for example. The positive news is that these types of apps seem to be unaffected by China’s change.
The9 would be unable to follow any plans it has for using cryptocurrencies as a means of payment because it is a Chinese venture. By the same token, the world’s most populated country and second-largest economy has lost a huge use case for cryptocurrencies.
Supply and demand determine cryptocurrency values. Although, now that China has tightened its regulations on how it may be used, there could be less interest for cryptocurrencies. This might put more downward pressure on Bitcoin’s price.