, ethereum and different main cryptocurrencies have been exhausting hit by the shock collapse of the sprawling FTX empire—with fears suddenly springing up around other crypto companies.
The bitcoin worth has crashed beneath $17,000 per bitcoin, down from nearly $70,000 this time final yr (though Elon Musk has just revealed a bold price prediction). Ethereum
has additionally seen its worth crash from final yr’s all-time highs, even as Wall Street giant JPMorgan makes a big bet on crypto.
Now, short-seller Citron Analysis, which misplaced huge in its wager towards meme inventory darling GameStop attributable to final yr’s retail buying and selling growth, has named ethereum as its new short-selling goal—just weeks after ethereum cofounder Vitalik Buterin issued a “controversial” crypto adoption warning.
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The collapse of cryptocurrency trade FTX and the downfall of its lauded founder Sam Bankman-Fried, usually referred to as SBF, has “reignited [Citron’s] flame for short-selling as a result of it proves there are numerous shares on the market which might be elevated on the misunderstanding that ‘another person did the homework,'” Citron wrote in a Twitter thread.
Citron went on to explain the $130 billion ethereum, the second-largest cryptocurrency after bitcoin and the inspiration for a lot of smaller cryptocurrencies, as having “many widespread sense flaws.”
SBF, who declared FTX bankrupt final week with a reported $10 billion gap in its steadiness sheet, had constructed a popularity as a serious political donor and crypto regulation lobbyist.
“The U.S. authorities ought to be embarrassed that they let one particular person get so near the internal sanctum of presidency and affect with out even checking a tax return,” Citron posted.
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The ethereum worth has crashed by over 70% since this time final yr, falling alongside bitcoin and different main cryptocurrencies, as retail buying and selling mania by way of Robinhood, Coinbase and related apps has abated.
In July, Citron founder Andrew Left, one of many world’s best-known short-sellers, described cryptocurrencies broadly as a “fraud,” telling a convention viewers: “I believe crypto is simply full fraud, time and again and over,” it was reported by Reuters.
After Citron was pressured to shut out its brief place in GameStop attributable to a frenzy retail shopping for, it stopped publishing brief stories in January 2021 however has now stated it can restart, pointing to the FTX saga as justification.
“Possibly it’s time to lastly [listen] to skeptics as an alternative of vilifying them,” Citron stated.