The host of Mad Money, Jim Cramer, has cast doubt on the trustworthiness of crypto exchange Binance. “Why can’t people in charge just admit that Binance has no real legitimacy after what happened to FTX?” he asked, adding: “I would trust my money more in Draftkings than I would Binance.”
The host of CNBC’s Mad Money show, Jim Cramer, cast doubt on the trustworthiness of cryptocurrency exchange Binance in a series of tweets this week. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website. He tweeted Friday:
Why are there no strategists who say that most crypto are worthless so sell them? Why can’t people in charge just admit that Binance has no real legitimacy after what happened to FTX?
The crypto exchange founded by Sam Bankman-Fried (SBF) filed for Chapter 11 bankruptcy on Nov. 11, and an estimated one million customers and investors lost billions of dollars from its collapse. Bankman-Fried has been arrested in the Bahamas and the U.S. government and several regulators have brought fraud charges against SBF and the crypto exchange.
The Mad Money host also compared Binance to the fantasy sports betting platform Draftkings, which is banned as illegal gambling in many countries and U.S. states. Cramer tweeted:
I would trust my money more in Draftkings than I would Binance.
Only two days prior, Cramer cryptically asked his Twitter followers: “Do you feel as reassured by Binance as I do?” Many users on the social media platform responded to the Mad Money host, taunting that whatever company Cramer is against is likely to be a good buy.
Bitcoin developer and podcaster Matt Odell commented on Cramer’s Draftkings comparison: “I do not have to trust either company. Unlike you, I hold my wealth myself without trust. It is called bitcoin. Binance. Draftkings. Chase Bank. All require trust. As trust erodes throughout our institutions, the value prop of trust minimized money will become obvious to many.”
Cramer said on CNBC Thursday: “I think you should be negative on crypto. I’m negative on XRP, LTC, and DOGE because I haven’t been able to find anyone that takes them … It’s like $80 billion worth of non-Bitcoin that’s destined to be wiped out.” Last week, he advised investors to get out of crypto, emphasizing that “it’s never to too late to sell an awful position.” Following the FTX meltdown, Cramer called Bankman-Fried a pathological liar, a conman, and a clueless idiot.
The Mad Money host used to invest in bitcoin, ether, and non-fungible tokens (NFTs) but sold all his crypto holdings last year. “I told you I sold my bitcoin and ethereum a long time ago … and used the proceeds to buy a very nice farm,” he recently shared. Cramer has been advising investors to avoid investing in speculative assets, including crypto, while the Federal Reserve continues to tighten the economy.
What do you think about the comments by Jim Cramer about Binance and FTX? Let us know in the comments section below.
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