Citron Research Exits GameStop Shorts, Compares GME To Meme Coins
- PHPzOriginal
- 2024-06-14 12:32:481230browse
GameStop shares might drop after a rollercoaster ride, but Citron Research, led by Andrew Left, is exiting its short position on the video game retailer.
GameStop shares may have dropped after a rollercoaster ride, but Citron Research, led by Andrew Left, is exiting its short position on the video game retailer.
In a post on X, Citron Research announced that it was exiting its short position, explaining that the platform now has “enough runway” following its $4 billion cash infusion.
Citron Research Exits GameStop Shorts, Compares GME To Meme Coins
However, despite Citron Research and Left accepting the loss, they seem to believe that even with billions, GameStop will not last, and the leg up was hype-induced.
Citron Research specifically acknowledged the market irrationality, pointing out Dogecoin’s huge mega valuation. According to CoinMarketCap data, Dogecoin is the most valuable meme coin at spot rates, with a market capitalization of over $20 billion.
The researcher maintains a bearish outlook on GameStop, believing that its financials are deteriorating, a stance that justified its initial short position.
Nevertheless, the possibility of another retail investor-driven rally, as seen in meme coin booms, prompted Citron to cut its losses. In 2021, Citron Research was forced to cut losses as GameStop share prices soared.
However, news of Citron Research exiting their short positions on GameStop saw GME share prices drop. Subsequently, some of crypto’s top meme coins, like PEPE, FLOKI, and ROAR, fell in tandem.
Top Meme Coins Plunging After GME Shares Fall
According to CoinMarketCap data, most meme coins have dropped double digits in the past week of trading. Roaring Kitty (ROAR) is down 30% in the previous week and still in the red over the last day, according to Coingecko data.
Interestingly, the meme coin is plunging barely days after the highly-anticipated live stream by Keith Gill, also known as “Roaring Kitty,” failed to deliver any substantial news.
It remains to be seen whether meme coins will recover after their contraction. Some analysts believe the failure of the United States Securities and Exchange Commission (SEC) to take action against “Roaring Kitty” could catalyze demand, reviving a new altcoin season.
Therein, meme coins will be recharged, tracking higher and lifting their total market cap above the $60 billion mark. Due to the plunge, the total meme market cap has shaved over $8 billion.
News source：https://www.kdj.com/cryptocurrencies-news/articles/citron-exits-gamestop-shorts-compares-gme-meme-coins.html
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