Penny stocks are like low cap crypto

Penny stocks are like low cap crypto, says Wolf of Wall Street

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– Jordan Belfort, also known 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 $1.00 from small and unknown companies.

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

– During an interview with Yahoo Finance, 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.

– 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.

– 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.

– 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”.

– 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”.

Penny stocks are like low cap crypto, says Wolf of Wall Street

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