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Dogecoin (DOGE) Praised by Short-Selling Agency Citron Research, Here's Important Reason

Published 06/13/2024, 11:48 AM
Updated 06/13/2024, 04:00 PM
Dogecoin (DOGE) Praised by Short-Selling Agency Citron Research, Here\'s Important Reason

U.Today - Renowned short-selling agency Citron Research has praised the original meme cryptocurrency, Dogecoin (DOGE), while it announced that it will no longer short GameStop (NYSE:GME).

The agency sends a newsletter to its customers, in which it informs them about companies that it believes to be overvalued or noticed to be engaged in fraud, scams, etc. It also strives to identify frauds on financial markets and seeks to expose terminal business models.

Citron Research glorifies DOGE, sides with GameStop

The tweet by the agency quoted by Chinese cryptocurrency blogger and journalist Colin Wu says that Citron Research is not short GME any more. Revealing the reason for it, Citron says that it is not because they believe that the company’s fundamentals are going to see radical changes in the future, but “with $4 billion in the bank, they have enough runway to appease their cult like shareholders.”

The reason here is that they have decided to respect the irrationality of the market. Here they made a mention of Dogecoin as an example of a similar asset, which is worth $20 billion in terms of market capitalization and is sort of representative of “the market’s irrationality”: “We respect the market's irrationality. After all, Dogecoin remains a $20 billion entity.”

According to Reuters, though, founder of Citron Research Andrew Left said that should GME reach $45-$50 per share, he would begin shorting it again.

GameStop should Buy Bitcoin: Scaramucci, Mow

Last week, GameStop published its financial results for the first quarter this year and shared its intention to emit more shares – the share price plunged as a result. The company became famous in 2021 after a short squeeze. Several prominent figures from the finance and crypto space suggested that GameStop should start buying Bitcoin and adding it to its corporate treasury.

Those two influencers were Anthony Scaramucci and Jan3 chief executive 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

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