Jordan Belfort equated such assets with penny stocks, noting that one can only make money on them if one enters the project early

Wolf of Wall Street warns against investing in cryptocurrencies with low capitalization

29.08.2022 - 09:30

150

1 min

What’s new? Former stockbroker Jordan Belfort, known as the “Wolf of Wall Street,” has compared ultra low cap cryptocurrencies to the penny stocks he himself used to trade. In his opinion, while some may make a lot of money investing in this type of asset, most of the buyers of these tokens will lose their funds.

The full version of the interview on Youtube

Cryptocurrencies with low market capitalization are also called “shitcoins” in the community. Typically, these projects do not represent much value to the community and do not leverage technological innovations. Often, they can be memes or scams.

What other statements have been made? Belfort believes that there is no way to protect yourself when investing in this type of asset, except for a very early entry into the project. According to the “Wolf of Wall Street,” only someone who is willing to allocate some amount from their portfolio to gamble can buy ultra low cap tokens.

Jordan Belfort sees bitcoin and Ethereum as reliable assets. In this, BTC may “trade more like a store of value and less like a growth stock”

In July, Belfort advised investors to buy bitcoins for long-term storage. In his view, the asset will help depositors to protect funds against inflation. Belfort added that long-term holders of BTC are more likely to profit as the asset’s issuance is limited and inflation continues to rise.

Author:

Michael Golikov Michael Golikov

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy