• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Saturday, January 28, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

Low cap crypto is like penny stocks, says Wolf of Wall Street

August 29, 2022
in Crypto News
Reading Time: 3 mins read
A A
ShareShareShareShareShare

Related articles

Lawyer Predicts Grayscale’s Win Against The SEC In Supreme Court

January 28, 2023

NFT Collection Laid Back Llamas Collection Price, Stats, and Revi…

January 27, 2023

Covered:

  • Wolf Of Wall Street Speaks On Low Cap Crypto

Wolf Of Wall Street Speaks On Low Cap Crypto

Former stockbroker Jordan Belfort, known colloquially as the “Wolf of Wall Street” has likened low market cap crypto assets to penny stocks due to their extreme price volatility.

Penny stocks refer to highly speculative shares priced under $1 from small and unknown companies. Generally they either fetch massive returns for investors or crash and burn dramatically.

Belfort’s rise to prominence in the 90s and eventual run in with the Securities and Exchange Commission (SEC), was in part, due to brokering deals for these stocks.

During an interview with Yahoo Finance on Aug. 27, Belfort noted that these types of investments have the “same predictable cycle” which can generate huge returns but can also burn investors who fail to cash out at the right time:

“With those ultra low cap deals, wow you get a hold of one of those things at the right time you can make just massive, massive money. But on the flip side of that you’re playing in someone’s playground, you know you’re not the house, they’re the house.

“You’re coming in there and most of the time you’re probably gonna lose,” he added.

Belfort went on to note that people should only invest in low cap crypto assets if they are willing to allocate a small amount of their portfolio to taking gambles, and suggested that they should never fall under the category of a serious investment.

“I don’t think there’s any amount of research that you can do to protect yourself from these ultra low cap [assets], except getting in really, really early. It doesn’t matter if it’s good management [or] bad, they’re that low that what’s gonna end up happening, it’s gonna take its ride up, and then when it gets to the top, people are gonna dump it.”

Trending

Best Crypto Exchanges For 2022

The Wolf of Wall Street also noted however, that he is primarily looking at Bitcoin (BTC) and Ether (ETH) in relation to long term investments due to their strong fundamentals. He stated he is particularly interested in BTC due to its potential to become a store of value and inflation hedge once the market matures further in the future.

“I just think it’s a matter of time that where enough of it gets into the right hands, there’s a limited supply, and as inflations does continue to keep going and going and going, at some point in time there’ll be enough maturity with Bitcoin where it starts to trade more like a store of value and less like a growth stock,” he explained.

From crypto hater to proponent

Belfort is one of many popular figures in the investment space to do a 180 on crypto over the past couple of years, joining the likes of Shark Tank investors such as Mark Cuban and Kevin O’Leary.

Back in February 2018, Belfort predicted the price of BTC would eventually crash to zero and described the asset as the “perfect storm for manipulation” due to the thinness of the market at the time. He also questioned BTC’s supposed use case payments as opposed to just being an investment vehicle, and suggested that it would be regulated out of existence.

Commenting on his change in sentiment with Yahoo Finance, Belfort noted he was “wrong” about BTC going to zero and that life is about “constantly adapting and growing.”

He said while he still stands by most of his criticism, the growing mainstream adoption of BTC and crypto, along with an understanding that the sector won’t be banned outright, ultimately changed his mind.

“My original thesis was sovereign risk that the U.S. would just say ‘no more’ like China did and that was the real thing that was driving me to be really bearish on Bitcoin,” he said.

 

Credit: Source link

ShareTweetSendPinShare
Previous Post

The Top Privacy Coins Saw Fewer Percentage Losses Than Most Tokens This Week – Privacy Bitcoin News

Next Post

South Korea’s Science Ministry to develop ethical principles for the metaverse

Related Posts

Lawyer Predicts Grayscale’s Win Against The SEC In Supreme Court

January 28, 2023

Grayscale Investments, a crypto asset management company, is preparing for a prolonged legal battle with the Securities and Exchange Commission...

NFT Collection Laid Back Llamas Collection Price, Stats, and Revi…

January 27, 2023

7,000 Laid Back Llamas have taken over the digital mountains of the Metaverse. Every Llama is unique with different fur...

Developer confirms billions of SHIB will be burned with Shibarium

January 27, 2023

Amid the tanking SHIB burn rate, lead developer Shytoshi Kusama assures an uptick in burn rate with the Shibarium release....

Bullish for Bitcoin and the whole industry: GDP rises 2.9% in fourth quarter

January 27, 2023

Source: Bitcoin BTC The positive GDP number for the US economy in Q4 2022 hints at investor optimism and could...

Global Digital Cluster Coin (GDCC) Is Now Available on LBank…

January 27, 2023

INTERNET CITY, DUBAI, 27th January, 2023, ChainwireLBank Exchange, a global digital asset trading platform, listed Global Digital Cluster Coin (GDCC)...

Load More
Next Post

South Korea's Science Ministry to develop ethical principles for the metaverse

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

The Ryder Ripps BAYC Saga Bleeds into 2023

January 5, 2023

ETHDenver Primer: What You Can Expect From Ethereum’s Largest Annual Conference

January 13, 2023

Japan Plans Easing Crypto Token Listings Despite FTX Crash

December 28, 2022

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • Amazon Developing Blockchain & NFTs Gaming Platform: Report
  • BlockFi permitted to pay $10M in staff bonuses in spite of bankruptcy
  • Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year – Markets and Prices Bitcoin News

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • bitcoinBitcoin(BTC)$23,096.001.17%
  • ethereumEthereum(ETH)$1,599.562.13%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.00-0.06%
  • usd-coinUSD Coin(USDC)$1.00-0.10%
  • binancecoinBNB(BNB)$308.971.89%
  • rippleXRP(XRP)$0.4131681.87%
  • binance-usdBinance USD(BUSD)$1.00-0.10%
  • cardanoCardano(ADA)$0.3914254.82%
  • dogecoinDogecoin(DOGE)$0.0888794.25%
  • matic-networkPolygon(MATIC)$1.155.29%
  • okbOKB(OKB)$38.868.89%
  • solanaSolana(SOL)$24.623.65%
  • staked-etherLido Staked Ether(STETH)$1,597.452.21%
  • polkadotPolkadot(DOT)$6.603.36%
  • shiba-inuShiba Inu(SHIB)$0.0000123.20%
  • avalanche-2Avalanche(AVAX)$20.8516.71%
  • litecoinLitecoin(LTC)$89.052.35%
  • tronTRON(TRX)$0.0628491.78%
  • uniswapUniswap(UNI)$6.873.85%
  • daiDai(DAI)$1.00-0.08%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,107.001.66%
  • cosmosCosmos Hub(ATOM)$13.696.55%
  • ToncoinToncoin(TON)$2.617.02%
  • chainlinkChainlink(LINK)$7.424.86%
  • leo-tokenLEO Token(LEO)$3.68-0.95%
  • moneroMonero(XMR)$178.944.90%
  • ethereum-classicEthereum Classic(ETC)$22.092.55%
  • AptosAptos(APT)$17.840.37%
  • bitcoin-cashBitcoin Cash(BCH)$134.781.28%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • stellarStellar(XLM)$0.0938383.22%
  • apecoinApeCoin(APE)$6.250.81%
  • quant-networkQuant(QNT)$153.223.87%
  • nearNEAR Protocol(NEAR)$2.627.20%
  • crypto-com-chainCronos(CRO)$0.0821513.26%
  • filecoinFilecoin(FIL)$5.441.55%
  • lido-daoLido DAO(LDO)$2.426.10%
  • algorandAlgorand(ALGO)$0.2629978.86%
  • vechainVeChain(VET)$0.0248545.48%
  • hedera-hashgraphHedera(HBAR)$0.0697274.69%
  • internet-computerInternet Computer(ICP)$6.025.38%
  • axie-infinityAxie Infinity(AXS)$11.985.04%
  • decentralandDecentraland(MANA)$0.729.93%
  • aaveAave(AAVE)$87.381.29%
  • the-sandboxThe Sandbox(SAND)$0.776.49%
  • eosEOS(EOS)$1.110.88%
  • fantomFantom(FTM)$0.4767691.26%
  • flowFlow(FLOW)$1.103.17%
  • elrond-erd-2MultiversX(EGLD)$45.495.05%