American television personality, author, and host of Mad Money on CNBC Jim Cramer has advised crypto investors to sell off their crypto holdings ahead of the huge industry collapse which would happen next year.
Kramer believes that the cryptocurrency industry will plummet further in 2023 and he has warned investors to remain vigilant of the speculative growing asset class.
“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 CNBC Mad Money host said
As part of his prediction, he mentioned that digital assets like Ripple (XRP), Cardano (ADA), Polygon (MATIC), and Dogecoin (DOGE) will still plunge deeper than they already have. Kramer also mentioned that these top-shot cryptocurrencies will eventually reach $0 once the recession hits.
United States dollar-pegged stablecoins were not left out of his predictions. Do Kwon’s TerraUST, which was backed by the dollar, plunged to $0 within three days in May leaving its investors confused. Cramer clarifies that Tether (USDT) is no different, adding that “Tether, a so-called stablecoin that’s supposed to be kinda-sorta pegged to the dollar, still has a $65 billion market cap.”
“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 dot-com collapse,” he said
Cramer Says SBF Was Careless
Jim Cramer went on to talk about FTX and its founder Sam Bankman-Fried who resigned from his position as Chief Executive Officer (CEO). At the beginning of November, the firm and its former CEO went under several investigations and probes from regulators globally. The root of its problem was the mismanagement of customers’ deposits.
A few of the regulators that are currently probing FTX are the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Securities Commission of the Bahamas.
In Cramer’s opinion, the U.S. attorney has no concerns about intent, except the laws were broken. For Bankman-Fried, “You were careless, you didn’t keep records — unlawful — alright, so if you’re admitting to illegality, even though you believe that you had no intent,” Cramer mentioned.
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