With Ameri Holdings confirming its implementation of “blockchain technology” in its business model, the organization underwent a rapid retail assessment breakthrough post the broadcast. Corresponding to several reports, the company Ameri Holdings’ was previously termed as unprofitable and it was notified to be having a cash crunch.

The same strategy has been adopted by several companies to soar their profitability. The latest addition to the list is Long Island Tea Corp which modified its label as ‘Long Blockchain’ which made the company shares escalate.  The enterprise is currently proposing to construct a mining address and shift past the iced tea trade. There were also information wherein the securities and trade authority of the United States closed down a blockchain firm, because it lacked product and revenue. Now, when Ameri Holdings’ is following the path of implementation of blockchain technology, a correspondent belonging to Seeking Alpha has doubts regarding the entire situation as the AMRH’s financials are on a diminishing spree.  The reports suggest that core improvement of the organization is in a complete mess, even the operating incomes have been negative, there is severe cash crunch and the enterprise lacks $20 million working cash loss. The document further pointed that there is not any significant diversity in the trade basics belonging to AMRH. The organization’s wealth advancement has stood still off the former three quarters. Moreover, the loss spree is seen to be continuing due to the rising general expenses and managerial costs. There has been no cash inflow in the recent past and the existing level of cash holds at $0.8 million which means the working capital is a severe cause of concern.

What Ameri Holding’s has to say regarding technological implementation to its investors?

The organization Ameri Holdings’ vows of blockchain additions leading to crazy trade volumes and valuation surge amounting to $39 million, after the company introduces blockchain technology in its trade pattern. The media published by the organization promised its shareholders that the shared ledger automation is directed towards bringing in more competence and clarity to the supply chain. Additionally, smart settlements were promised for merchants and the term blockchain appeared frequently in the broadcast. The analyst further reveals that the advertisement soared shares by 71% and 13,615,785 stakes were traded compared to the regular 100,000 for each day.

The report reveals the rise in share prices is a concern, when it is connected to an organization that has poor financials. The notes mentioned in the report warned investors that the $39 million boost in terms of equity retail funding is not reasonable and so they need to be careful as per the hidden risk involved with the transaction.

Dormant organizations gaining benefits from the hype created around BlockChain Technology is presently for the moment

The organizations like this, and the present regulatory strike opposing blockchain organization having negative output, has led to, much of hesitation against initial coin offerings or ICO along with the heap of “distributed blockchain technology” broadcast. Convincingly, there must be many people who consider the $39 million surge in equity retail funding as bizarre for a dormant organization that abruptly implements blockchain technology, but many people even consider this as a warning for future.