Citron Research is betting big against cryptocurrencies. In particular, the company is focusing on Ethereum, which it claims is the best digital asset to short at the time of writing.
Citron Research Is Pushing Ethereum
Crypto has been treated rather unfairly throughout 2022. The year has arguably been the worst for the space, with several digital currency and blockchain firms filing bankruptcy and falling off the Earth’s grid. It’s a sad and ugly sight to see, and one that has only been boosted by the falling digital currency prices traders have been forced to endure.
Bitcoin – the world’s largest and most powerful digital currency by market cap – has lost more than 70 percent of its value in the last 13 months. In November of last year, the asset was trading at a new all-time high of about $68,000 per unit, though now, the currency is trading in the mid-$16K range. Other mainstream assets, such as Ethereum, have followed suit, and overall, the digital currency space has lost more than $2 trillion in general valuation.
Citron Research thinks Ethereum serves a unique purpose, and it’s an asset that’s loved by many investors. While not as large as bitcoin, for example, the network of Ethereum continues to attract crypto developers, who see it as the prime blockchain in which to build the new assets or projects on. The network also recently underwent an upgrade from proof of work (PoW), which relies mainly on mining as bitcoin does, to proof of stake (PoS).
Ethereum now operates under the name “Ethereum 2.0,” and it is allegedly faster and is less bogged down by traffic and gas fees. The switch is known as the Merge, and it has allegedly helped Ethereum become more energy efficient.
Citron says that it is once again for short selling following the FTX collapse. In a statement, the company commented that the situation is a classic one where everyone got involved because they simply assumed that those in charge knew what they were doing. The company mentioned:
It proves there are many stocks out there that are elevated on the misconception that someone else did the homework… The U.S. government should be embarrassed that they let one person get so close to the inner sanctum of government and influence without even checking a tax return.
Andrew Left Doesn’t Care for Crypto
The sentiment stemming from Citron shouldn’t come as a surprise given that its founder – a man named Andrew Left – has done nothing but bash crypto over the last several years. During a recent conference, Left said to the audience:
I think crypto is just [a] complete fraud over and over and over. Maybe it is time to finally [listen] to skeptics instead of vilifying them.
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