Citron calls for short sale of Coinbase stock after exchange outage

Citron calls for short sale of Coinbase stock after exchange outage is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• An outrage, resulted from a Bitcoin flash crash,caused a 10% drop in the digital asset’s price.

• 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.

on Feb. 28, Exchange outrage broke out,because of a Bitcoin flash crash, and causinga 10% drop in the digital asset’s price. But Citron the recent site malfunction as a key factor, making the long Bitcoin/short Coinbase trade one of the most compelling opportunities in the crypto market.

Tense moment

Coinbase, along with other crypto exchanges, suffered a temporary outage as a result of a Bitcoin.The outage, swiftly repaired by the crypto exchange,caused a 10% drop in the digital asset’s price.

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’s approval of spot Bitcoin exchange-traded funds in January, Coinbase has risen to become the world’s fourth-largest publicly-traded asset exchange. Its pivotal role as a custodian for spot Bitcoin ETF managers has contributed to its success, facilitating the seamless exchange of BTC transfers to ETF shares based on user demand.

Also Read:Bitcoin soars above $64,000 then plunges 7%

Need cautions

Prominent short-seller Citron, led by Wall Street figure Andrew Left, has recommended a short sale of Coinbase (COIN) stock following the exchange’s temporary outage on February 28. Citron sees the recent site malfunction as a key factor, making the long Bitcoin/short Coinbase trade one of the most compelling opportunities in the crypto market.

Institutional investors commonly engage in such divergence trades, strategically betting on the increase in value of one asset while predicting a decrease in another. However, it’s important to note that Citron’s predictions haven’t always been accurate. In a similar move in late 2022, after the collapse of cryptocurrency exchange FTX, Citron recommended shorting Ether (ETH) in a now-deleted tweet. Despite this bearish stance, Ether has since gained 182%, now trading at $3,434.