Jordan Belfort, the “Wolf of Wall Street,” expects bitcoin and ethereum to be “substantially higher” despite FTX collapse

Jordan Belfort, aka the Wolf of Wall Street, expects bitcoin and ethereum to be “much higher” than they currently are. Noting that the collapse of the FTX crypto-currency exchange is a scam, he stressed that its implosion “doesn’t mean you can completely ignore bitcoin and say it’s worthless or headed to zero.“

Wolf of Wall Street calls FTX a scam

Jordan Belfort, a former stockbroker whose memoirs were adapted into a film called “The Wolf of Wall Street“, shared some recommendations on bitcoin and ethereum in a video posted on his Youtube channel on Monday. The film was directed by Martin Scorsese and stars Leonardo DiCaprio.

Jordan Belfort founded Stratton Oakmont, which operated as a boiler room that marketed penny stocks and scammed investors with pump-and-dump stock sales. He became a motivational speaker after pleading guilty to fraud in 1999 and went to prison for 22 months.

Regarding FTX, the crypto-currency exchange that imploded and filed for bankruptcy on November 11, the Wall Street wolf described, “FTX was a scam and there is no way to protect yourself from such a scam“. He added:

But just because FTX itself was a scam, it doesn’t mean you can completely ignore bitcoin and say it’s worthless or going to zero. The same is true for ethereum.

Belfort recommends holding on to bitcoin and ethereum.

Jordan Belfort believes that the price of bitcoin and ether will rise substantially despite recent crypto-market sales and FTX fallout. However, he is skeptical of other coins, noting that outside of the two largest crypto-currencies, it “Would literally not touch crypto-currencies right now with a 10-foot stick“.

For those who already own other crypto-currency tokens, he recommends “to take a step-by-step look at each coin“to decide whether to sell them and when would be a good time to do so. “This should be based on what you bought and what you think it’s worth now“, he said.

Investors should look at the fundamentals of each token and ask themselves why they bought the coin in the first place, Belfort advised. “Was there something behind your purchase, were you expecting good news, did you think the company was really doing something and that we were going to have a breakthrough technology?” he asked.

However, if investors bought crypto-currencies because of “the bigger fool theory, which means you thought … someone even more foolish than you would come and buy the coin from you at a higher price“, Jordan Belfort suggested:”Anything outside of bitcoin and ethereum, I would look at it very closely and maybe consider selling it.“Referring to the dot-com bubble, where 99% of the trading collapsed and never came back, he explained:

Do some analysis, do some research… Is there a problem that this coin or token solves or are we just buying into all the hype and hoping it continues because if it does, honestly, you know there’s a chance that most of these things never come back.

Jordan Belfort also revealed that he plans to buy more bitcoin and ether. While warning that both crypto-currencies could fall further in the short term, he said:

I think it’s a good bet that right now, here, if you buy bitcoin or ethereum, the odds are going to be significantly higher in 5 to 10 years – actually much higher, I think.

“If you buy bitcoin or ethereum, it should be a very small part of your overall investment portfolio“, Belfort advised, noting that he would limit crypto investments to “less than 10%” of its overall holdings. “This is the money that you can essentially speculate with. You can afford to lose it.“