Fun

Prominent short-seller Citron targets Coinbase stock after exchange outage

News Feed - 2024-03-01 02:03:43

Zhiyuan Sun6 hours agoProminent short-seller Citron targets Coinbase stock after exchange outageThe crypto exchange quickly repaired the outage on Feb. 28 with no further disruption to users.3652 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksInvestment research firm Citron, founded by prominent Wall Street short-seller Andrew Left, has called for the short sale of Coinbase (COIN) stock following the exchange’s temporary outage on Feb. 28.


“The recent $COIN site malfunction makes the long Bitcoin/Short Coinbase trade one of the most compelling trades in the crypto market,” Citron wrote on Feb. 29, adding: “This means going LONG bitcoin through an ETF and short the bloated Coinbase exchange."The recent $COIN site malfunction makes the long Bitcoin/Short Coinbase trade one of the most compelling trades in the crypto market. This means going LONG bitcoin through an ETF and short the bloated Coinbase exchange.— Citron Research (@CitronResearch) February 28, 2024


Institutional investors frequently long one asset and short another as a hedging move, betting that the long asset will increase in value and the underlying short asset will lose value in a divergence trade. On Feb. 28, Coinbase, along with other crypto exchanges, suffered a temporary outage as a result of a Bitcoin (BTC) flash crash that saw a 10% decrease in the price of the digital asset before paring losses.


During the Coinbase outage, users reported zero account balances and errors in buying and selling. “All customer account balance display issues have been restored on Coinbase.com. Thank you to all of our customers for your patience today,” the exchange wrote in a follow-up message on Feb. 29. 


Since the U.S. Securities and Exchange Commission approved spot Bitcoin exchange-traded funds in January, Coinbase has become the world’s fourth-largest publicly-traded asset exchange, with a market cap of more than $50 billion. In addition to the resurgence of Bitcoin to its $60,000 milestone, the exchange has benefited from being one of the custodians of spot Bitcoin ETF managers, where it facilitates the exchange of BTC transfers to ETF shares according to user demand. 


Despite Citron’s bearish stance, the short-seller is not always correct in its market predictions. In late 2022, shortly after the collapse of cryptocurrency exchange FTX, Citron called for the shorting of Ether (ETH) in a now-deleted tweet.


“We continue to be short ETHER as we believe this $130 bil token has as many common sense flaws as does the whole SBF story,” the short-seller stated at the time. Since the sell recommendation, Ether has returned 182% and now trades at $3,434. 


Related: Bitcoin miner Hut 8 shares tank 23% amid accusations from short-sellers# Bitcoin# Blockchain# Coinbase# Cryptocurrencies# Business# StocksAdd reactionAdd reactionRead moreBlackRock Brazil launching depositary receipts fund mirroring US BTC ETF

News Feed

All Eyes on the Next Fed Meeting: Market Trajectories Hinge on Decision
All Eyes on the Next Fed Meeting: Market Trajectories Hinge on Decision Equities, precious metals, and cryptocurrencies have been on a tear during the last three weeks of 2023, and
Regina Sadykova10 hours agoCrypto VC: Risk and investment strategies with Shima CapitalCointelegraph sits down with venture capital leaders in a new series to talk about which investments interest them most.466 Total vie
Bank of Japan to Launch Digital Yen Pilot Program Next Year
Bank of Japan to Launch Digital Yen Pilot Program Next Year The Bank of Japan is preparing to run a test trial of its own central bank digital currency (CBDC), the digital yen, wit
Solana Faces Make-Or-Break Moment As $1.77 Billion Unlock Looms
Este artículo también está disponible en español. In a technical chart shared today, crypto analyst Koroush Khaneghah, Founder of Zero Complexity Trading, underscores Sol
Coinbase CEO Urges Congress to Pass Clear Crypto Legislation — Warns America Risks Losing Financial Hub Status
Coinbase CEO Urges Congress to Pass Clear Crypto Legislation — Warns America Risks Losing Financial Hub Status Coinbase CEO Brian Armstrong has called on Congress to pass clear c
Nifty News: Yuga cuts non-royalty markets, South Korea to discuss NFTs with Gary Gensler
Ezra Reguerra14 hours agoNifty News: Yuga cuts non-royalty markets, South Korea to discuss NFTs with Gary GenslerYuga Labs takes down some of its NFT collections from marketplaces that do not support creator royalties.13
FBI Warns Ransomware Gangs Are Harassing Victims via Telephone Calls to Pay Crypto Ransoms
FBI Warns Ransomware Gangs Are Harassing Victims via Telephone Calls to Pay Crypto Ransoms The U.S. Federal Bureau of Investigation (FBI) has released an alert t
Scientists use WiFi signals to track human movement for the metaverse
Tristan Greene6 hours agoScientists use WiFi signals to track human movement for the metaverseWiFi sensing makes it possible to track movement in the dark and through walls.2065 Total views7 Total sharesListen to article
History of Crypto: The ICO Boom and Ethereum's Evolution
Cointelegraph7 hours agoHistory of Crypto: The ICO Boom and Ethereum"s EvolutionIn 2017 the initial coin offering boom launched a tidal wave of activity for the crypto industry. Despite being plagued by scams and fraud,
Bitcoin, Ethereum Technical Analysis: BTC Hovers Near $23,000 to Start the Weekend
Bitcoin, Ethereum Technical Analysis: BTC Hovers Near $23,000 to Start the Weekend Bitcoin started the weekend hovering near $23,000, as markets continued to react to personal cons
As Bitcoin’s Hashrate Remains Elevated, BTC’s Mining Difficulty Expected to Reach a Lifetime High
As Bitcoin’s Hashrate Remains Elevated, BTC’s Mining Difficulty Expected to Reach a Lifetime High During the last month, Bitcoin’s hashrate has been coasting along above
Bitfarms monthly Bitcoin earnings up 34% amid increased hashrate
Ezra Reguerra40 minutes agoBitfarms monthly Bitcoin earnings up 34% amid increased hashrateBitfarms CEO Ben Gagnon said that the company earned 62% more Bitcoin since the Bitcoin halving event in April.177 Total views1 T