Code Chain New Continent Limited (CCNC) stock plunged in the Pre-market today. The stock declined by more than 23.75% to reach $0.92. At the end of the previous trading session, the stock closed at $1.20. The average volume of stock traded in the last trading session was approx. 1.06 million.
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Reasons of CCNC stock decline
There is this one news by the company that could be linked to its decline. But that is not the overall reason. The overall cryptocurrency market is itself facing a decline. The companies related to this industry are in decline.
The company announced the intention to offer the shares of common stock in a proposed underwritten public offering. The cash proceedings will be used in the working capital and general corporate expenses by the company and also the cryptocurrency mining machines purchase. The offering is entirely dependent on the situation of the market, so there can be no surety as to whether or when the offering may be completed.
In terms of the performance, the last quarter of the company showed not so good numbers. So the reason could not be entirely related to its performance or any press release. This means the reason is not internal but also external related to the overall performance of the cryptocurrency market.
The overall performance of the cryptocurrency market is facing a major decline. The decline is related to the uncertainties over the Federal Reserve monetary policies in the situation in which the inflation rate is increasing and the new variant of the coronavirus named Omicron is on the rise which can have negative effects on the overall economy of the world.
The major cryptocurrencies lost a significant value in the decline of the market. According to the stats of the cryptocurrencies, Bitcoin lost more than 22% in the last 1 month. Ethereum lost more than 8.08% in the last 1 month. Dogecoin lost more than 31% in the last 1 month.
Effect on the stock
Due to these reasons, the stock of the company plunged as it has associated itself with the crypto mining business after recently diversifying its business. The price of the stock will be stable when the overall crypto market becomes stable.
Conclusion
Due to this uncertain situation in the cryptocurrency market, the Code Chain New Continent Limited (CCNC) related to the cryptocurrency mining business has suffered a major decline in its stock. Investors are looking forward to any development in the economic policies and the treatment of the Omicron variant.
