Wolf Of Wall Street Says Low Market Cap Cryptocurrencies Are Like Penny Stocks

Jordan Belfort – former stockbroker as well as colloquially known to be the “Wolf of Wall Street” – has drawn assimilation between the crypto assets (which have decreased market capitalization) and penny stocks because of the high price volatility experienced by them.
Penny stocks denote the highly speculative shares valued below $1 from little and anonymous firms. Normally they either bring huge returns for their investors or witness a dramatic collapse. The extreme elevation of Belfort during the 90s as well as consequential trouble with the U.S. Securities and Exchange Commission (SEC) partially owed to brokering contracts for such stocks.
Jordan Belfort Says Crypto Assets with Low Cap are Similar to Penny Stocks
On 27th August, while appearing in an interview conducted by Yahoo Finance, Belfort stated that the respective investment types have a very probable cycle in which great returns can be generated however the investors (who remained unsuccessful to cash their gains at the exact time) may get burned.
He mentioned that with the respective extremely low cap contracts, a chance is available to them for having enormous money however this should be kept in mind that the investors are playing in someone other’s playground and can be deprived of what they have. He added that there are greater chances to lose.
Belfort also mentioned that the investors should just invest in crypto assets with decreased capitalization if they intend to specify a little proportion of the portfolio for taking gambles. As per his suggestion, they should stay away from falling under the class of a huge investment. He disclosed that no considerable research has been done over if someone can protect himself from the assets with considerably low capitalization, except by entering very early.
Now Crypto Proponent was Once Crypto Hater
He specified that the management status of the organization, whether it is good or bad, does not have any significance while the important thing is that if it is a low cap institution then it will rise upward to reach its extreme and people will dump it. Belfort is considered among the well-known figures within the investment world and recently has collaborated with prominent investors taking into account Kevin O’Leary and Mark Cuban.
In 2018’s February, he anticipated that Bitcoin’s price would plummet to zero. He raised objections against the supposed utilities of Bitcoin in payments contrary to only being a vehicle of investment and predicted that regulatory pressure would terminate its existence.
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