U.Today – Renowned short selling agency Citron Research praised the original meme cryptocurrency (DOGE), while announcing that it will no longer short GameStop (NYSE:).
The agency sends a newsletter to its clients, in which it informs them about companies that it believes are overrated or that they have realized are involved in fraud, scams, etc. It also strives to identify fraud in financial markets and tries to expose terminal business models. .
Citron Research glorifies DOGE and sides with GameStop
The agency's tweet cited by Chinese cryptocurrency blogger and journalist Colin Wu says that Citron Research is no longer short of GME. Revealing the reason, Citron says it is not because they believe the company's fundamentals will undergo radical changes in the future, but rather that “with $4 billion in the bank, they have enough runway to appease their cult shareholders.” .
The reason is that they have decided to respect the irrationality of the market. Here they mentioned Dogecoin as an example of a similar asset, which is worth 20 billion dollars in terms of market capitalization and is a kind of representative of “the irrationality of the market”: “We respect the irrationality of the market. After all, Dogecoin is still a $20 billion entity.”
However, according to Reuters, Citron Research founder Andrew Left said that if GME were to hit $45-$50 per share, he would start shorting again.
GameStop should buy: Scaramucci, Mow
Last week, GameStop released its financial results for the first quarter of this year and shared its intention to issue more shares; As a result, the stock price plummeted. The company became famous in 2021 after a short squeeze. Several prominent figures in the financial and crypto space suggested that GameStop should start buying Bitcoin and add it to its corporate treasury.
Those two influencers were Anthony Scaramucci and Jan3 CEO, Bitcoin maximalist Samson Mow. The latter believes that, in that case, both BTC and GME would see “Godzilla candles” immediately.
This article was originally published on U.Today.
