- Andrew Left, Founder- Citron Research gave pretty bearish statements on cryptocurrencies.
- He has already claimed that the valuation of Grayscale’s Bitcoin Trust is far from realistic and said it is ‘ridiculous in 2017.
- During 2020, Citron Research was bullish on bitcoin. Now, not so much.
Andrew Left’s Not-So-Nice Statement
Andrew Left had given some statements regarding the crypto industry, well, something negative. Okay, a lot of negative. Citron Research Founder Andrew Left is one of the most famous short-sellers in the crypto industry. He went as far as calling them ‘complete fraud.’ He is not a very big fan of the crypto industry. He has already claimed that the valuation of Grayscale’s Bitcoin Trust is far from realistic and said it is ‘ridiculous.’
This was said on the grounds of the fact that Grayscale didn’t have any insurance for the bitcoin it owned. This statement was in 2017. In November 2020, Citron Research said that they are excited about bitcoin’s future and the whole crypto industry and that there was no better inflation hedge in the market. The company has stopped believing in that statement.
Brief History of Citron Research’s Uncoverings
Citron Research believed that owning MicroStrategy’s stock (a company owned by (Micheal Saylor) would bring them closer to the crypto industry and bitcoin. This was when they decided to hold a position in the company. Andrew Left is famous because of his efforts exposing frauds of some of the biggest companies in the world. One of the breakthroughs in his career was the exposure to Valeant Pharmaceuticals. Citron Research found that the world’s biggest pharmaceutical company inflated its revenue. This was done by using specialty pharmacies.
Shortly after the scam, the CEO signed their resignation, and the drug company collapsed in the stock market. Citron Research also got a lot of exposure in the world of controversy after they shorted the stock of the video game company Gamstop. This happened in early 2021. A lot of retail investors started having conversations about Citron Research. Many were furious. The company has witnessed constant attacks from traders since then. Finally, Andrew Left announced that they would discontinue publishing short-seller reports last year.
Source: https://www.thecoinrepublic.com/2022/07/12/citron-research-thinks-crypto-industry-is-a-complete-fraud/