Legendary stockbroker Jim Cramer voiced his criticism of some altcoin projects. Cramer suggested that we know nothing about altcoins. Here are the details…
Cramer pointed to two altcoin projects: We don’t know anything
In the latest episode of CNBC’s Squawk Box, which aired on Thursday, Jim Cramer claimed that we know nothing about altcoins like Solana (SOL) and XRP. According to Cramer, this is because the government does not want to regulate these assets. “I find the level of arrogance of people who think cryptocurrency good is shocking,” said the CNBC Mad Money host. He also used the following expressions:
What do we know about Solana? What do we know about XRP? The answer is zero. The reason we don’t know anything is because the government doesn’t think it should be regulated.
"I find the level of arrogance for people who think that crypto's good shocking," says @jimcramer. "What do we know about Solana? What do we know about XRP? The answer is zero. The reason we know zero is because the government doesn't feel it should be regulated." pic.twitter.com/ybFsS81Ruo
— Squawk Box (@SquawkCNBC) November 17, 2022
Cramer’s statements received a lot of backlash from the crypto community as they viewed the claims as fake. In particular, Cramer’s allegations also received a response from Ripple and Attorney John E. Deaton, who represented XRP holders in the US Securities and Exchange Commission (SEC) case.
Deaton’s answer
In response, Deaton stated that XRP is subject to US regulations, emphasizing that contrary to the claims of the Mad Money server, it is documented as a cryptocurrency. According to the lawyer, in 2015, the government forced Ripple to comply with various banking regulations, including the Bank Secrecy Act. He also cites the 2019 report by the Financial Stability Oversight Council, which labels XRP as a cryptocurrency, signed by Jerome Powell, the current chairman of the Fed, and Jay Clayton, the former head of the SEC. Deaton also added the following
… we know SO MUCH about XRP, not ‘nothing’ as you say.
The government that Jim claims doesn’t regulate #XRP actually regulated it in 2015 and Ripple was FORCED to comply with U.S. Banking Laws like the BSA (Bank Secrecy Act).
The 2019 FSOC Annual Report to the @USTreasury highlighted #XRP along with #BTC and #ETH.
— John E Deaton (@JohnEDeaton1) November 17, 2022
Specifically, another user stated that the fact that people do not know anything about these cryptoassets is not due to a lack of regulation, but rather the failure of the media and analysts like Cramer to educate them.
Cramer’s attitude towards cryptocurrencies is changing
It’s worth noting that the Mad Money host has been inconsistent in its stance on crypto over the past few years. As recently as April, the analyst was bullish about Ethereum. He had predicted a rise near the $4,100 price point. In June, Cramer claimed that there are people who can make wealth in crypto and urged investors to include crypto in their portfolios, even though he recommends sound risk management practices.
CNBC’s @jimcramer just questioned whether crypto should be reported on at all and says he was wrong to, even though he made money on it:
“I’m at least big enough to admit this time I was wrong about crypto” pic.twitter.com/6K9B0P7A5n
— Zack Guzmán (@zGuz) August 31, 2022
But a month later, the Mad Money server claimed that there is no real value in crypto. He also said that the media should not be reporting on crypto in August. In particular, Cramer’s inconsistent stance and a series of inaccurate market forecasts have led many to question his ability as a financial analyst. So much so that an application has been filed for an Inverse Cramer ETF for investors to profit by betting against it.
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