‘Reignited’ GameStop Short-Seller Reveals The Surprise Cryptocurrency It’s Betting Against After FTX Crash Hits Bitcoin And Ethereum Price

Bitcoin
BTC
, ethereum and other major cryptocurrencies have been hard hit by the shock collapse of the sprawling FTX empire—with fears suddenly springing up around other crypto companies.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigate the latest bitcoin and crypto market crash

The bitcoin price has crashed under $17,000 per bitcoin, down from almost $70,000 this time last year (though Elon Musk has just revealed a bold price prediction). Ethereum
ETH
has also seen its price crash from last year’s all-time highs, even as Wall Street giant JPMorgan makes a big bet on crypto.

Now, short-seller Citron Research, which lost big in its bet against meme stock darling GameStop due to last year’s retail trading boom, has named ethereum as its new short-selling target—just weeks after ethereum cofounder Vitalik Buterin issued a “controversial” crypto adoption warning.

It’s in a brutal bear market that you need up-to-date information the most! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market

GameStop’s retail trading frenzy was mirrored by the soaring price of bitcoin, ethereum and other … [+] cryptocurrencies over the last two years.

NurPhoto via Getty Images

The collapse of cryptocurrency exchange FTX and the downfall of its lauded founder Sam Bankman-Fried, often known as SBF, has “reignited [Citron’s] flame for short-selling because it proves there are many stocks out there that are elevated on the misconception that ‘someone else did the homework,'” Citron wrote in a Twitter thread.

Citron went on to describe the $130 billion ethereum, the second-largest cryptocurrency after bitcoin and the foundation for many smaller cryptocurrencies, as having “many common sense flaws.”

SBF, who declared FTX bankrupt last week with a reported $10 billion hole in its balance sheet, had built a reputation as a major political donor and crypto regulation lobbyist.

“The U.S. government should be embarrassed that they let one person get so close to the inner sanctum of government and influence without even checking a tax return,” Citron posted.

The ethereum price has collapsed over the last year, falling alonside the price of bitcoin and other … [+] cryptocurrencies, with GameStop short-seller Citron betting ethereum will continue to slide.

Forbes Digital Assets

The ethereum price has crashed by over 70% since this time last year, falling alongside bitcoin and other major cryptocurrencies, as retail trading mania via Robinhood, Coinbase and similar apps has abated.

In July, Citron founder Andrew Left, one of the world’s best-known short-sellers, described cryptocurrencies broadly as a “fraud,” telling a conference audience: “I think crypto is just complete fraud, over and over and over,” it was reported by Reuters.

After Citron was forced to close out its short position in GameStop due to a frenzy retail buying, it stopped publishing short reports in January 2021 but has now said it will restart, pointing to the FTX saga as justification.

“Maybe it is time to finally [listen] to skeptics instead of vilifying them,” Citron said.