Bitrabo Editorial
Following GameStop’s volatile performance, Citron Research, led by Andrew Left, has decided to exit its short position on the video game retailer. The company cited GameStop’s recent $4 billion funding as a reason for its decision to close the short position.
Citron Research’s GameStop Exit and Comparison to Meme Coins
Despite closing the short position, Citron Research and Andrew Left remain skeptical about GameStop’s long-term prospects. They view the recent surge in GameStop’s stock price as hype-driven, similar to the valuation of meme coins like Dogecoin.
Citron Research maintains a bearish stance on GameStop, pointing to deteriorating financials as the basis for its initial short position. The possibility of another retail investor-induced rally, akin to meme coin surges, has influenced Citron’s decision to exit the short position.
However, news of Citron Research’s exit from GameStop shorts resulted in a decline in GME’s stock price, leading to a similar drop in other meme coins such as PEPE, FLOKI, and ROAR.
Meme Coin Decline Amid GameStop Stock Fall
Data from CoinMarketCap reveals that most meme coins have experienced double-digit declines in the past week. For example, ROAR coin has dropped by 30% in the last week, with continued losses over the last day according to Coingecko.
Notably, the decline in meme coin prices coincided with a lack of significant updates in Keith Gill’s (Roaring Kitty) recent live stream, causing further uncertainty in the market. Analysts speculate on whether regulatory inaction towards Roaring Kitty by the SEC could spark renewed interest in meme coins, potentially leading to a market recovery.
The future of meme coins remains uncertain, with the possibility of a revival that could push the total market cap beyond $60 billion after the recent market contraction, which saw a reduction of over $8 billion.