Wolf of Wall Street Likens Law Cap Crypto To Penny Stocks 
  • Low-cap crypto assets should never be regarded as a serious investment as per Belfort.
  • He is particularly thinking about making long-term investments in Ether and Bitcoin.

The Wolf of Wall Street, Jordan Belfort, a former stockbroker, has compared low market cap crypto assets to penny stocks. Highly speculative shares from tiny, unheard-of enterprises are referred to as penny stocks. Typically, they either provide enormous returns for investors or severely fail.

Brokering agreements for these stocks contributed to Belfort’s rise to fame in the 1990s and a subsequent run-in with the Securities and Exchange Commission (SEC). In an interview on August 27, Belfort said that these kinds of investments follow the same predictable cycle, which has the potential to yield enormous returns but also the potential to ruin investors who don’t cash out at the correct time.

Belfort Stated :

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.

In addition, Belfort noted that low-cap crypto assets should never be considered a serious investment and that consumers should only engage in them if they are ready to risk a tiny portion of their wealth. However, he also stated that because of their solid foundations, he is primarily considering long-term investments in Bitcoin (BTC) and Ether (ETH). He claimed that as the market reaches a more developed stage in the future, BTC can serve as a store of wealth and an inflation hedge.

Belfort’s False Prediction

Belfort claimed in the previous month that, Investing in Bitcoin would be shocking if it didn’t pay off within the following three to five years. The commodity was the perfect storm for manipulation at the time, according to Belfort, who predicted the price of BTC would eventually fall to zero in February 2018. At that time, the market was extremely thin. Belfort then said that life is about constantly changing and learning and that he was wrong about BTC dropping to zero.  

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