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
Jim Cramer, host of CNBC’s Mad Money show, 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 on 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 last year sold off all of his crypto holdings. “I told you I sold my bitcoin and ethereum a long time ago… and used the proceeds to buy a really 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 an entire industry of crypto boosters desperately trying to keep all this stuff in the air – not too different from what happened to 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.
Mad Money host said:
I’m betting that FTX will not 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.
