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

Cover Image via U.Today

Renowned Short-Selling Agency Citron Research Praises Dogecoin and Drops GameStop

Citron Research, a reputable short-selling agency, has recently praised the original meme cryptocurrency, Dogecoin (DOGE), while announcing that it will no longer short GameStop (GME).

Through its newsletter, Citron informs clients of companies it believes are overvalued or engaged in questionable practices. Its mission includes exposing fraud and identifying weak business models in financial markets.

Citron's View on DOGE and GME

In a tweet shared by Chinese cryptocurrency blogger and journalist Colin Wu, Citron Research reveals that its decision to stop shorting GME is not based on improved fundamentals but rather on the company's financial resources:

"With $4 billion in the bank, they have enough runway to appease their cult like shareholders."

This decision reflects Citron's acceptance of market irrationality, exemplified by Dogecoin's $20 billion market capitalization: "We respect the market's irrationality. After all, Dogecoin remains a $20 billion entity."

Reuters Report

However, according to Reuters, Citron Research founder Andrew Left stated that he would consider shorting GME again if its share price dropped to $45-$50.

GameStop's Bitcoin Strategy

In related news, GameStop recently announced its financial results for Q1 and plans to issue additional shares, resulting in a decline in share price. Following the company's infamous 2021 short squeeze, multiple financial and crypto experts have suggested that GameStop consider investing in Bitcoin.

Anthony Scaramucci and Jan3 CEO Samson Mow have advocated for GameStop to acquire Bitcoin, speculating that such a move could create significant price appreciation for both assets.