Jim Cramer is a well-known media figure in the stock market space. However, lately, he’s been arguing against cryptocurrencies. Jim Cramer has also been notorious for being wrong in his opinions way too many times, which motivated the creation of Jim Cramer’s Inverse ETF. So is he wrong this time as well?
Jim Cramer criticized altcoins
"I would not touch crypto in a million years, because I wouldn't trust the deposit bank," Jim Cramer says while discussing the fallout of the collapse of FTX. https://t.co/0VbM5tYThE pic.twitter.com/9kqVMvbSOw
— CNBC (@CNBC) December 23, 2022
Sam Bankman-Fried (SBF) has been released on a $250 million bail, which rightfully angered Cramer and many others who were affected by the FTX collapse. Cramer went so far as to say that he wouldn’t touch crypto in a million years while saying he sold all his crypto a few seconds before that.
Cramer heavily criticized altcoins like Litecoin or Solana, claiming everyone who owns these cryptocurrencies are idiots. “These people who own these things should not own them,” he added vigorously.
Moreover, Cramer stated that he would never put his own money into crypto because he does not trust the industry which lacks clear regulation. Cramer described the frustrating experience he had trying to get his money back from a cryptocurrency company, saying he had a tough time.
“I like to have my money at JPMorgan, and I check on Monday to see whether my balance is there. It feels good,” he explained.
Jim Cramer urges SEC to do something
Cramer also discussed Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), who said that current securities laws are sufficient for the regulation of the crypto industry.
He stated that the SEC should come on and enforce crypto firms. Cramer thinks they must put a stop to the issuance of new money. Moreover, he called these people stupid.
“It’s the creation of money by cretins. I don’t think cretins should create money and then suck people in. These are worse than even the worst Nasdaq stocks,” Cramer explained.
SBF bailed out
While Jim Cramer may be furious over some of his losses in crypto, he is surely agitated by the fact that SBF has been released on a $250 million bail on December 23rd. Many speculate on where he got such money, thinking it is customers’ funds.
SBF will live with his parents until the next hearing, which should take place in New York City on January 3rd, where will enter his plea. SBF will reportedly be monitored by wearing an electronic bracelet and counseled about mental health. His passport has been taken away.
The FTX crash definitely brought a lot of bad light onto the whole crypto space, creating the need for crypto exchanges to show their proof of reserves. Mistrust prevails from retail as well as from whales.
However, Cramer is notorious for his bad timing, claiming Bear Stearns was a great stock in 2008, or that Coinbase (COIN) was heading to the moon. It’s now down more than 90% from its peak. That is why investors shouldn’t necessarily take Cramer’s words seriously. Maybe actually the opposite.