Wall Street Crypto Criticizer Says Bitcoin will Bust, Investors Will Get Slaughtered
Wall Street Legend Jordan Belfort Calls Bitcoin a Trap
Jordan Belfort really is the stuff of legends. The multi-millionaire first hit international news when he was imprisoned on several charges involving the scamming of investors. Following his story, numerous pieces of media depicted the disgraced executive as the “wolf of wall street,” the ultimate example of someone who made their own luck, often at the price of others.
Despite some of the negative reputation, there is no disputing that Jordan Belfort is an incredibly smart financial mind.
Now, the professional and former scammer has come forward to express his public opinion that Bitcoin is the next big trap, and that investors ought to stay as far away as they possibly can.
Using his history as a scammer as the basis for his knowledge on the subject, Belfort has outlined his belief that Bitcoin presents itself as an incredibly sophisticated version of a classic “pump and dump” scam. This opinion is somewhat controversial; millions of investors globally would certainly disagree on-face with the assertion that Bitcoin is overtly a major scam.
Who is Jordan Belfort?
Belfort is most often associated with the popular film based loosely on his life, The Wolf of Wall Street. In this blockbuster, Leonardo DiCaprio plays the famous stock broker while he ascends in acclaim before eventually heading off to prison for his crimes. Though the story does much justice to the financial crimes that motivated his eventual conviction for defrauding investors way back in 1999, it is generally understood that the movie doesn’t tell the full story and extend of Belfort’s operations.
In an interview with CNBC, the former stock broker remarked that he had gotten scamming “down to a science.” Belfort would even specifically target people based on his idea of who might be the best type of person to scam money out of.
Using his brokerage, Stratton Oakmont, the broker would pressure and manipulate his clients into buying stocks that would eventually just become worthless anyway. This seems to be the main source of Belfort’s expertise on the issue; he knows how to recognize when a stock is being pumped.
The Pump and Dump
Belfort’s method of scamming was known as “pumping and dumping.” In easiest terms, this means that he would pump the price of a worthless stock up, and then work to sell off, or dump, all of the shares that he owned. Belfort would have people all over the country holding stocks in target companies, who were often worth very little.
Then, he would manipulate his clients into buying the stocks until the price began to jump and take off. Finally, he would instruct his holding army to dump all of the shares, securing an unfair but very large profit.
Bitcoin: Pump and Dump?
Belfort argues that Bitcoin’s ascent into the public media and into investor markets smells distinctly of the kind of pump and dump scheme that he would have run back in the 1990s. The broker outlined that the internet has made it easier than ever for the worthless cryptocurrency to be unfairly pumped and promoted by zealous scammers.
He isn’t alone, either. Hundreds of major business executives all over the world have questioned the extent to which the Bitcoin hype is justified. Truthfully, it may be that only time will tell how successful Bitcoin really is.