Jordan Belfort, or better known as the “Wolf of Wall Street”, believes that Bitcoin and Ethereum will be “much higher” in the future despite the recent collapse of FTX. Belfort claims that the crypto exchange was a scam, but also stressed that its failure doesn’t mean one should ignore Bitcoin and Ethereum.
The Wolf of Wall Street Labels FTX a Fraud
Jordan Belfort, the memoirist of a former stockbroker whose story was adapted into the movie “The Wolf of Wall Street”, directed by Martin Scorsese and starred by Leonardo DiCaprio, shared some insights on Bitcoin and Ethereum in a video uploaded to his YouTube channel on Monday.
Belfort is the founder of Stratton Oakmont, a boiler room that traded penny stocks in order to defraud investors. After pleading guilty in 1999 to fraud, he was sentenced to 22 months imprisonment and later became a motivational speaker.
Regarding FTX, the cryptocurrency exchange which filed for bankruptcy on November 11, Wolf of Wall Street commented: “FTX was a scam and there is no way to protect yourself against a scam like that.” He added:
But FTX was a fraud, but this doesn’t mean you have to ignore Bitcoin and Ethereum. It’s not useless or worthless, you can’t just say it’s going to zero.
Belfort Endorses Bitcoin and Ethereum
Belfort, despite the crypto market selloff and the fall of FTX, believes that Bitcoin and Ethereum prices will keep rising in the future. He is, however, skeptical of other coins and notes that, apart from the two most popular cryptocurrencies, he doesn’t know much about them. “I literally wouldn’t be touching crypto right now with a 10-foot pole.”
For those who already own crypto tokens, he recommends to “go step by step looking at each coin” and decide whether it should be sold or not. “This has to be based on what you bought and what you think it’s worth right now,” he said.
Investors should look at the basics of each token, and then ask themselves why they bought it. Belfort advised. “Was there something behind your purchase? Did you expect good news to come out? Do you think the company was really doing something and we’re going to have breakthrough technology?” He queried.
However, if investors purchased cryptocurrency due to “the big dummy theory, which means you thought… that someone even dumber than you would come along and buy the coin from you at a higher price,” Belfort suggested: “Anything outside of Bitcoin and Ethereum, I would look at it closely and consider maybe selling it.” Referencing the dotcom bubble, he said that 99% of deals failed to close and they never returned.
Do some analysis, do some research… Is this coin/token solving a problem or are we simply believing in the hype? If so, then chances are that these tokens will never be back.
Belfort also revealed that he plans to buy more Bitcoin and Ethereum, although he warned that both cryptocurrencies could plummet in the near term.
It’s possible to buy Bitcoin or Ethereum right now, which I believe is a great bet. They will rise substantially in the next five to ten years, I believe.
“If you are buying Bitcoin or Ethereum, it should represent a very small portion of your overall investment portfolio,” Belfort advised that he would limit cryptocurrency investment to “less than 10%” of his total assets. “That is the money you can use to speculate. You can afford it.”
What do you think? Are you a Bitcoin or Ethereum expert? Please let us know your thoughts in the comments section.
