Jim Cramer is known as an American television commentator, writer, showman, and former hedge fund manager. He is also the host of CNBC’s Mad Money, where he is recognized for his flamboyant personality and outspoken views on the stock and crypto markets.
Recently, it was reported that Cramer spoke positively about Binance and BNB tokens on CNBC’s Market Alert program on September 4. While pointing out that the centralized exchange has yet to prove its crypto reserves, he also had good things to say about Binance CEO and Founder, Changpeng Zhao (CZ).
BuAfterwards, an incredible incident occurred when Changpeng Zhao commented on a post made on X, supporting that the situation was fake. CryptoBusy, an X user, revealed that the statement, which was shared as Jim Cramer’s recent comment, was actually from an interview that took place in 2022 and was manipulated.
Cramer is known as a controversial figure. Some people admire his passion and willingness to speak his mind, while others find him too aggressive and stubborn. However, there is no doubt that he is one of the most influential voices in the financial world.
Interestingly, Jim Cramer is not only known as a controversial figure but also for making market predictions that often turn out to be the opposite of what is expected. This incident has even led to the creation of an investment product called Inverse Cramer Tracker ETF.
Inverse Cramer Tracker ETF is known as an investment fund that profits when Cramer’s stock picks underperform. The fund is designed to take advantage of skepticism towards Cramer’s calls in the market.
Therefore, the ETF works by short selling the stocks recommended by Cramer. Short selling a stock involves borrowing and selling shares of a stock with the expectation that the stock price will decrease. If the stock price does decrease, the ETF can buy back the shares at a lower price, make a profit from the price difference, and return the borrowed shares to the lender.
Cramer’s unpredictability was recently seen in two financial events related to Nvidia (NASDAQ: NVDA). The Mad Money host advised investors to step back from Nvidia, but witnessed the stock rise by a surprising 284%.
On August 25, one day after Cramer mentioned the stock’s rise, Nvidia experienced a 2.43% decline. Furthermore, since Cramer told investors to “get out” in January, Bitcoin (BTC) has seen an almost 50% increase as of the time of writing. Bitcoin was trading at $17,093 when the statement was made.
Finally, influential cryptocurrency commentator Crypto Rover (@rovercrc) made a statement about the unpredictability of investors due to the rise of Binance’s token:
BNB Chain (BNB) has suffered from increasing rumors about liquidity issues in the crypto exchange in recent weeks. Despite being supported by red flags such as the suspension of Euro (EUR) withdrawals, it has not been proven true so far. Meanwhile, BNB is currently trading at $214.54, with a 0.42% increase during the day, according to the time of writing.
Under the threat of liquidation, which contributes to the fear, uncertainty, and doubt (FUD) surrounding Binance’s native token, there are still 628,940.69 BNB (134.97 million dollars) in the vault belonging to the hacker who caused the loss in 2022.
After the major BNB hack in November 2022, a threat position was created, and the Core Team of the BNB Chain suggested that the liquidation of this position should not be made organically, as it would have a potentially high impact on the price of BNB, similar to borrowed positions.