Forex in this article
index in this article
• “Wolf of Wall Street” with skepticism towards cryptocurrencies
• The FTX crash was a deliberate fraud
• Only two investable cryptocurrencies
The FTX scandal shocked the crypto community. Fears of contagion in the sector prompted investors to withdraw their capital from the market en masse. This has intensified the months-long crypto winter and risk aversion in the market has increased further.
As well Jordan Belforta former stockbroker best known for the movie “Wolf of Wall Street,” has spoken out on the matter and posted a YouTube video expressing his skepticism about the market.
The FTX crash was a “scam”
In the video, the market expert explains that the FTX collapse was a “scam” and there was no way to defend against it. Belfort has thus renewed its criticism of the crypto stock exchange and in particular of its founder Sam Bankman-Fried. After the revelation of the dramatic events a few weeks ago, Belfort had already spoken of a “deliberate collapse” of the crypto exchange in an interview with Fox News. Bankman-Fried is a sociopath, FTX’s business model is a “pump and dump scheme”, a deliberate scam.
Do not touch cryptocurrencies with tongs
When it comes to cryptocurrencies, the market expert has a clear opinion: he literally wouldn’t touch crypto with pliers just yet. With one exception, however: the two biggest cybercoins on the market, Bitcoin and Ethereum. “Just because FTX was a scam doesn’t mean you should completely ignore Bitcoin and Ethereum,” Belfort said in a recent video.
However, investors should not focus exclusively on the two cryptocurrencies when building their portfolio. “Bitcoin or Ethereum should only be a very small part of your overall investment portfolio,” the 60-year-old advised.
Instead, investors should trust the “best investment” in US investments, which is an index fund on the S&P 500. “The best investment is to buy the S&P 500, go to Vanguard, or the one of the other really cheap mutual funds or ETFs, and put the most money into it,” Belfort said.
Selling the cryptocurrencies you currently own – even if it’s altcoins and not Bitcoin or Ethereum – is probably not the best solution, he says. “The worst time to sell is usually when, because everything is down, you panic and sell at the worst possible time.”
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