Citron Research, a top-tier short seller and research company, explains why Ethereum (ETH) could be the worst sufferer of new U.S. regulatory attacks on the cryptocurrency sphere.
Ether to $350: Ethereum (ETH) slammed by Citron Research as NY Attorney comes for KuCoin
In its recent Twitter thread, Citron Research experts predicted that Ethereum (ETH) could be under fire as New York Attorney General files suit against KuCoin, a major centralized exchange.
As KuCoin is accused of selling unregistered securites, Ethereum (ETH) is one of them. Citron Research stressed that the security status of Ether (ETH) bacame even more obvious as the network migrated to proof-of-stake (PoS) consensus and replaced mining by staking.
Ethereum (ETH) failed to deliver on its promises of a "decentralized network," researchers say. Instead, it become a full-fledged investment vehicle and should, therefore, be taxed and regulated accordingly.
As such, Ethereum (ETH) could better be compared to corporations, not to "alternative" systems like Bitcoin (BTC). Should one compare Ethereum (ETH) and OpenAI, a U.S.-based ChatGPT creator, by approximate market capitalization, Ethereum (ETH) would be valued at about $350.
Ethereum (ETH) is changing hands at $1,401 by press time. Should Citron Research be right about its prospects, it would be on the eve of a 75% price plunge.
As covered by U.Today previously, Citron Research is an adamant critic of cryptocurrencies: they slammed Ethereum (ETH) in 2022 and compared it to collapsed exchange FTX. Also, it bashed Grayscale Bitcoin Trust (GBTC), one of the most overhyped investment tools of the previous bull run.
Ethereum (ETH) or OpenAI, Lululemon, Chipotle and Twitter?
When regulators investigate the internal processes of Etheruem (ETH), they will find an ordinary "ICO," not "smart contracts," the skeptics added:
When the AG opens the Ethereum Network kimono we expect the secrets of the to be just as bad as any shadowy organization with: self dealings, shady ICO transactions, multiple attempts to avoid federal laws of taxation and securities, all while being controlled by a small group of people under a guise of decentralization.
Also, recent charity initiatives by Vitalik Buterin look suspicious to Citron Research: they might cover tax evasion and look too similar to FTX's patented "effective altruism."
In order to demonstrate how absurd Ethereum's (ETH) current market capitalization is, Citron Research stressed that it is bigger than the market caps of OpenAI, Lululemon, Twitter and Chipotle combined, or as large as Disney.