The host of Mad Money, Jim Cramer, has advised investors to sell their crypto, emphasizing that “it’s never too late to sell an awful position.” Regarding FTX, Cramer predicted that the collapsed trading platform “won’t be the last of these crypto exchanges to go down.”
Jim Cramer’s Latest Crypto Advice
The host of CNBC’s Mad Money show, Jim Cramer, has advised investors to sell their cryptocurrencies following the collapse of crypto exchange FTX. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website. He said Monday:
You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets.
The Mad Money host used to invest in bitcoin, ether, and non-fungible tokens (NFTs) but sold all his crypto holdings last year. “I told you I sold my bitcoin and ethereum a long time ago … and used the proceeds to buy a very nice farm,” he shared.
He has been advising investors to avoid investing in speculative assets, including crypto, while the Federal Reserve continues to tighten the economy. He stressed that investors should not be fooled by some coins’ inflated market capitalization, warning that some cryptocurrencies — including XRP, dogecoin, cardano, and polygon — could fall to zero. Noting that stablecoin tether (USDT) “still has a $65 billion market cap,” Cramer opined:
There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dotcom collapse.
Cramer also shared his thoughts on the FTX implosion. The crypto exchange founded by Sam Bankman-Fried (SBF) filed for Chapter 11 bankruptcy on Nov. 11, and an estimated one million customers and investors lost billions of dollars from its collapse. The company is now being investigated for mishandling customer funds, among other charges.
The Mad Money host opined:
I am betting FTX won’t be the last of these crypto exchanges to go down.
Last week, Cramer called Bankman-Fried a pathological liar, a conman, and a clueless idiot. “Intent means nothing. Saying sorry means nothing. If you commingle, if you had no record keeping, those are against the law,” he stressed.
Do you think investors should follow Mad Money host Jim Cramer’s advice about selling crypto? Let us know in the comments section below.