Jordan Belfort, known as the ‘Wolf of Wall Street’, said that low cap cryptocurrency markets would have been called “penny stocks” in the conventional financial market.
Investing in the cryptocurrency market comes with a high amount of risk, and Belfort has weighed in on the market to explain how why.
But are investments in crypto assets really that bad? This depends on the point of view, argues Belfort. The man is known to have raised to prominence during the 90s by brokering successful deals with penny stocks.
In today’s realities, Belfort explained that penny stocks (and by extension low cap cryptocurrencies) can still generate high returns to investors, but also burn those who are not able to cash out in time.
“With those ultra-low cap deals, wow you get a hold of one of those things at the right time you can make just massive, massive money”, he said.
“But on the flip side of that you’re playing in someone’s playground, you know you’re not the house, they’re the house”, Belfort adding, going through the similarities between penny stocks and cryptocurrencies, and particularly those that have a low cap.
However, there are other issues with investing in low market cap cryptocurrencies. Many are a scam, and many will not let you withdraw your funds.
Even the likes of Mark Cuban, a savvy investor who often speaks in defense of the cryptocurrency sector, has been conned on at least one occasion, losing his investment on a dodgy project.
Perhaps it’s fitting that Belfort has now switched to being a cryptocurrency guru, moving away from the traditional stock market, having lost his reputation in the traditional financial market due to a fraud conviction.
But why bet on penny stocks or low cap cryptocurrencies when you have Bitcasino, 1xBit and FortuneJack instead?