March 29, 2024

The Wolf of Wall Street Jordan Belfort: Beware of Meme Cryptocurrencies

The desire to get big profits in a short time and minimal investments remains relevant in alltime.Jordan Belfort became famous for blowing bubbles in junk stocks. He invited clients to buy shares of little-known companies, promising explosive growth in the near future. Due to low liquidity, customers themselves raised prices, which fueled even more interest from the uninformed public. Since there were no objective reasons for the rise in capitalization, bubbles burst and investors lost money. Belfort's company earned both on commissions and on the sale of shares purchased at the start of the hype. This true story served as the plot of the film "The Wolf of Wall Street" with Leonardo DiCaprio in the title role.
"The Wolf of Wall Street" Jordan Belfort: Beware of meme cryptocurrencies

Image source: instagram.com/wolfofwallst

The scheme described above is called pump&dump(pump and dump). Any product can be hyped enough to make a crowd want to buy it. The lack of regulation and the ease of creating your own crypto coin are fertile ground for the emergence of unscrupulous projects. As an expert in this field, Jordan Belfort urges not to invest in Dogecoin, Shiba Inu and other meme cryptocurrencies.
"The Wolf of Wall Street" Jordan Belfort: Beware of meme cryptocurrencies

Image Source: Cryptocurrency ExchangeStormGain

Over the course of a year, the price of Dogecoin has skyrocketed hundreds of times, andShiba Inu - several thousand times. At the end of October, the media spread the news about one successful investor: in 400 days, his investment in SHIB from $ 8 thousand turned into $ 5.7 billion.This is how Belfort commented on it:

You hear crazy stories about people who have made millions and billions. But for every such person, there are 10,000 or 100,000 others who have lost money onShibaInu ... This is not a good investment.

However, Belfort sees no difference betweena decentralized DOGE to be mined and a SHIB issued by one person and representing an ERC-20 token. He calls both coins shitcoin, aimed at drawing investors' money, and urges the government to start regulating the cryptocurrency market as soon as possible.

The Wolf of Wall Street calls itself biga fan of blockchain technology and Bitcoin. But this was not always the case: in 2018, he gave a series of interviews, where he called Bitcoin a "scam" and a "bubble", predicting the complete oblivion of the cryptocurrency. So is it worth listening to him now?

 

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)