Jim Cramer Recommends to Look at Gold and Forget About the Crypto
CNBC Mad Money host and former hedge fund manager and co-founder of Thestreet.com, Jim Cramer, once again advised investors to stay away from cryptocurrencies despite favorable conditions for asset growth in the crypto market. Referring to charts interpreted by Decarley Trading Senior Commodity Strategist and Options Broker Carly Garner, Cramer stressed that investors “need to ignore the crypto cheerleaders now that bitcoin’s bouncing”: “If you seriously want a real hedge against inflation or economic chaos, she [Garner] says you should stick with gold. And I agree.” The Mad Money host explained that looking at the daily timeframe charts since March 2021, one can see a high correlation between Bitcoin futures and the Nasdaq-100 tech index. This indicates that BTC is behaving more like a risky asset than a stable hedge. At the same time, venture capitalist Tim Draper and billionaire hedge fund manager Paul Tudor Jones are leaning toward BTC being more stable and promising than gold in the long run. It is noteworthy that in June 2021, Kramer sold all his cryptoholdings and since then his criticism of digital assets began to take on the features of radicalism.
Roger Ver Decides to 'Forgive' His $20 Million Options Debt to Genesis
Controversial crypto entrepreneur, Roger Ver, did not respond to Genesis Global Limited's demand for $20 million in crypto options, which was filed as part of a subpoena issued by the New York County Supreme Court. The subpoena alleged that Ver was unable to settle his cryptocurrency options debt, which was due by December 30, 2022. Genesis is now seeking damages from the entrepreneur in the amount of at least $20,869,788. It is not yet clear why Ver has not yet responded to the calls of Genesis representatives and what his plans are in connection with this situation. But all parties remain hopeful that a peaceful solution can still be reached without a court hearing specifically on this issue. For now, GGC International, the British Virgin Islands division of Genesis Global, will await a response from Ver's legal team before determining its next course of action. If the court decides in absentia against Ver as a result of his failure to appear on the subpoena, he could face significant legal costs and possibly penalties. Notably, the proceedings against Genesis Global Limited came just a few months after Ver received a notice of default from the CoinFLEX cryptocurrency exchange. At the time, the CEO of the marketplace, Mark Lamb, stated that Ver owed the company $47 million in USD Coin (USDC) tokens after failing to meet margin requirements.
Grayscale's Michael Sonnenschein Accuses the SEC of Slowing Down the Price of Bitcoin
According to the CEO of Grayscale Investments, Michael Sonnenshine, the US Securities and Exchange Commission (SEC) approach to compliance with cryptocurrencies has hindered the growth of bitcoin. Sonnenschein also claims that it was the regulator’s inaction that “prevented Bitcoin’s advancement into the U.S. regulatory perimeter” and also delayed the spread of cryptocurrency business in the country. In a letter published in The Wall Street Journal on Jan. 23, the head of the digital asset management company wrote that the SEC was “late to the game” when it came to regulating cryptocurrencies and preventing FTX from going bankrupt: “Late doesn’t capture what transpired here. The problem is the Securities and Exchange Commission’s one-dimensional approach of regulation by enforcement.” In addition, he believes that while the SEC “should try to eliminate bad actors,” it also should not interfere with “efforts to develop appropriate regulation.” It is the current policy of the Securities and Exchange Commission that has led to the fact that US investors have been forced to use foreign crypto-currency enterprises, which are less secure and less regulated.