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Dogecoin (DOGE) Praised by Short-Selling Agency Citron Research, Here’s an Important Reason from U.Today
U.Today – Popular 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 overvalued or that are involved in fraud, scams, etc. It also strives to identify fraud in the financial markets and seeks to expose terminal business models.
Citron Research glorifies DOGE, sides with GameStop
The agency’s tweet quoted by Chinese cryptocurrency blogger and journalist Colin Wu states that Citron Research is no longer short GME. Revealing the reason, Citron says it’s not because they believe the company’s fundamentals will see dramatic changes in the future, but “with $4 billion in the bank, they have enough ground to appease their cult as shareholders.”
The reason is that they decided to respect the irrationality of the market. Here they mentioned Dogecoin as an example of a similar asset, which is worth $20 billion 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 remains a $20 billion entity.”
According to Reuters, however, Citron Research founder Andrew Left said that if GME were to reach $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 rose to prominence in 2021 after a short squeeze. Several prominent figures from the financial and cryptocurrency world have suggested that GameStop should start purchasing Bitcoin and adding it to its corporate treasury.
Those two influencers were Anthony Scaramucci and Samson Mow, CEO of Bitcoin maximalist Jan3. The latter believes that, in this case, both BTC and GME would immediately see “Godzilla candles”.