Wolf of Wall Street Jordan Belfort is Back Bashing Bitcoin Again on CNBC
Jordan Belfort has some word of advice for crypto investors. “Just f*ckin run.”
Belfort ran an over-the-counter brokerage house on Long Island called Stratton Oakmont and pleaded guilty in 1999 to manipulating investors into buying stocks that eventually turn out to be worthless. The former broker's story was made famous by Leonardo DiCaprio in Martin Scorsese's “Wolf of Wall Street.”
The former penny-stock broker Jordan Belfort spent nearly two years in prison for scamming investors. Bitcoin, he has no doubt, is the next trap that could leave some retail investors penniless.
To manipulate markets, Belfort highlighted the need for demand. “Back in the day” he had an army of people calling around the country and the world convincing people to buy stocks he would later “dump” and profit off of.
In the internet age, that manipulation tactic has become easier. ICOs, in many cases, turned out to be frauds and have become the target of Securities and Exchange Commission investigations. Google, Facebook, and Twitter all outlawed advertising of ICOs on their platforms.
“This thing is gonna evaporate like a mirage,” Belfort said. “There's a lot of really honest people who are gonna get slaughtered.” He predicted that it could go bust within the year, and when it does, will be “the bust heard around the world.”
Belfort went ahead to scrutinize Bitcoin’s security that it could diffuse a need for central banks and the argument that governments would provide an anonymous currency without regulation.
“We don't even know how bad it really is, for the average person who's really, with a good heart, who walks in saying, ‘I just — I want — I do because I believe in it, in the long term thing,' just f*cking run.”
Even though Belfort is an expert on scams, his advice on ICOs and bitcoin should be taken with a hint of salt. After all his understanding of financial markets is through the lenses of a traditional institutional investor.