CNBC’s Mad Money Hosting Jim Cramer casts doubt on the safety and security of Binance cryptocurrency exchanges. “Why can’t those in charge just admit that Binance has no real credibility after what happened to FTX?” He asked and added: “I would feel more secure putting my money into Draftkings than into Binance.”
Jim Cramer criticizes Binance
The host of CNBC’s Mad Money, Jim Cramer, has been making waves on Twitter this week. Cramer is a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website. He tweeted Friday:
Why aren’t analysts suggesting that most cryptocurrencies have no value and should be sold? Why won’t those in charge just admit it? After what happened to FTX, does Binance have any legitimacy?
The crypto exchange, founded by Sam Bankman-Fried (SBF), filed for Chapter 11 bankruptcy on November 11. With an estimated one million customers and investors, it lost billions of dollars in the collapse. Bankman-Fried was arrested in the Bahamas and the crypto exchange have been accused of fraud by the US government and other regulatory bodies.
The Mad Money host then made a comparison between Binance and fantasy sports betting platform Draftkings, which is illegal in many US states and countries. Cramer tweeted:
I would trust my money more with Draftkings than with Binance.
Just two days earlier, Cramer had posed a cryptic question to his Twitter followers: “Are you as comfortable with Binance as I am?” Many of the survey respondents on social media platforms were expecting the Mad Money host to tease any company, which Cramer believes to be a great buy.
Bitcoin developer and podcaster Matt Odell commented on Cramer’s Draftkings comparison: “I don’t need to trust either company. Unlike you, I keep my wealth without having to trust anyone. It’s called Bitcoin. Binance. Draftkings. Chase bank. They all require trust. As trust erodes in all of our institutions, the value of trust-minimized money will become obvious to many.”
Cramer said on CNBC Thursday: “I think you should be bearish on cryptocurrency. I’m bearish on XRP, LTC and DOGE because I haven’t been able to find anyone to take them… It’s like $80 billion in non-Bitcoin that’s bound to go away.” He then advised investors to stay away from speculative assets such as cryptocurrencies and highlighted the importance of avoiding them. “It’s never too late to sell a bad investment.” After FTX’s collapse, Cramer called Bankman-Fried a “pathological liar, con man and clueless idiot.”
The Mad Money host used to invest in Bitcoin, Ethereum, and other non-fungible tokens, but he sold all his crypto last year. “I told you I sold all my Bitcoin and Ethereum a long time ago… and used the proceeds to buy a really nice farm,” he recently shared. Cramer urged investors to steer clear of volatile investments such as cryptocurrencies, as the Federal Reserve continues to tighten the economy.
What do you think of Jim Cramer’s comments on Binance and FTX? Let us know what you think in the comments section below.