Musk creates “hype” with Bitcoin “pump and dump” comments: Jordan Belfort

Jordan Belfort, the former stockbroker and subject of the 2013 hit Wolf of Wall Street, argues that Tesla CEO Elon Musk “may not pump and sell cryptocurrencies,” but others “pump and tip around the hype” he is creates.

Jordan Belfort, the former stockbroker and subject of the 2013 hit Wolf of Wall Street, interfered with Tesla CEO Elon Musk’s Bitcoin comment, in which he said, “I could pump but I cant ab “, arguing that he can’t have other people pump and tip around the” hype “that the celebrity is generating.

“I like Elon Musk and I think he’s rich enough, he doesn’t have to make a few more dollars pumping and dumping,” said Belfort, who spent 22 months in prison after pleading guilty to charges of securities fraud and money laundering . Varney & Co. “on Thursday.

“I think the problem is people are using his support and pumping and dumping the hype that Elon creates, while he may not be pumping and toppling.”

Belfort made the comment the day after Musk said the “three significant assets” he personally owns, alongside his two companies, are Bitcoin, Dogecoin and Ethereum.

“If the Bitcoin price goes down, I’ll lose money,” Musk said during the discussion held Tuesday on a website for a “Bitcoin-focused initiative” called “The B Word” with Twitter CEO Jack Dorsey and the CEO of Ark Invest Cathie Holz. “I could pump, but I’m not canting.”

He also said Tesla and SpaceX own Bitcoin during the cryptocurrency discussion hosted by the Crypto Council for Innovation, which describes itself as “a global alliance of cryptocurrency leaders.”

According to Coindesk data, the price of Ethereum rose to over $ 2,000 after the billionaire’s announcement on Tuesday. Bitcoin, Dogecoin, Ripple, Cardano and most other cryptocurrencies were also up across the board on Tuesday, following Musk’s comments.

When asked why he’s such a huge fan of Dogecoin – a cryptocurrency based on a popular meme as a joke in 2013 – Musk said he likes dogs, memes, and the fact that Dogecoin “doesn’t take itself too seriously.” He later stated that he believes some of the most unlikely investments will end up being the most profitable.

In April of that year, Dogecoin saw its price jump more than 500%, partly due to the attention from Musk, which made Dogecoin a household name – at least for crypto investors.

Belfort cited Dogecoin as an example of where Musk was “likely used accidentally” to pump and dispose of the cryptocurrency.

Barstool Sports founder and CEO David Portnoy argues that it could be “frustrating” to “follow a guy who walks up and down” when it comes to the cryptocurrency market.

Critics accused Musk of manipulating the market through his praise and criticism of Bitcoin, as well as his unwavering support for Dogecoin, which started as a joke but has since gained immense resonance.

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Tesla announced in February that it would acquire the $ 1.5 billion cryptocurrency and accept it as payment. In May, Musk later withdrew the decision, saying the crypto’s energy usage was a threat to climate change and the automaker would no longer accept this as payment.

However, during Wednesday’s conference, Musk said Tesla would most likely accept Bitcoin again as a form of payment once it studies the amount of renewable energy used to mine the digital currency, Reuters reported.

Also in May, the China Banking Association warned members of the risks associated with digital currencies.

Bitcoin and other cryptocurrencies fell this month, with the group’s largest market value falling to the $ 30,000 level and falling from its record high of $ 64,000 earlier this year.

KRYPTO NEEDS REGULATION BUT NO NEW RULES

Bitcoin was trading at around $ 32,400 on Thursday afternoon after the most popular cryptocurrency dropped below $ 30,000 for the first time in a month two days earlier.

Belfort said host Stuart Varney on Thursday that he is also a cryptocurrency investor and is “long-term” with it. He noted that some of his positions involve investing in Bitcoin and Ethereum.

He also noted that he “wasn’t going to invest more than I could afford to lose”.

Belfort said he hopes the price of Bitcoin will go down again because he would “buy more if it kept going down”.

“I would love it to go down because I’m a long-term investor, so I don’t care if it goes up or down in the short term,” he told Varney.

“I would love to go back to 5,000 [BTC] and buy a ton of it there and that would be a great thing. “

Jordan Belfort, the former stockbroker and subject of the 2013 hit Wolf of Wall Street, interferes with the Tesla CEO’s Bitcoin comment by saying, “I could pump but I cant.”

He added that it is “very dangerous” for those “short-term trading in Bitcoin,” especially given the “volatile” cryptocurrency.

“Anyone who says they know where to go next is lying,” Belfort said. “Nobody knows where to go next.”

He pointed out that the price of Bitcoin “is prone to things like statements by Elon Musk, things that are happening in China”. [and] other parts of the world. ”

Bitcoin and other cryptocurrencies remain unregulated within the US financial system. The euphoria about cryptocurrencies at the beginning of the year was influenced by the increasing talks about regulations worldwide that have weighed on the price of Bitcoin.

Belfort admitted that because of all the uncertainty surrounding cryptocurrency, he has always been “afraid of Bitcoin”.

“Now who knows what the US will say about taxes and regulations, is it a security or not, and the risks are huge,” Belfort continued.

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“It’s still a nascent market until it really takes hold,” noted Belfort, adding that analysts “will be able to predict it much more systematically once cryptocurrencies are regulated and sovereign risk is better known”.

He then pointed out that, in his opinion, the industry is “now advanced enough that I think the odds are much better than sticking with us and not trying to regulate it out of business”.

He then emphasized that he believes what is keeping the price of Bitcoin and other cryptocurrencies low is “uncertainty on the regulatory front.”

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Audrey Conklin of FOX Business contributed to this report.

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