CNBC host “Mad Money” Jim To screw up noted Investors like him are expected to record profits in their cryptocurrency wallets on Monday before things get worse amid weakness linked to struggling Chinese real estate developer Evergrande.
What happened: Cramer said that while cryptocurrency supporters don’t like to hear the word “sell,” he “begs” investors who have made gains in cryptocurrency to sell some of their holdings and come back. to weigh in as the situation evolves.
“Don’t let this become a waste. Sell some, stick around for a long time, then let’s wait and see if China changes its attitude towards an Evergrande bailout, ”Cramer said on his show.
Cramer, who disclosed a position in Ethereum (CRYPTO: ETH), said his concerns begin with Attached (CRYPTO: USDT), a stable coin pegged to the US dollar.
See also: Why Bitcoin and Ethereum are trading lower today
Tether is the third largest cryptocurrency by market value, behind only Bitcoin (CRYPTO: BTC) and Etherereum.
“The problem with tether is that it’s backed by various holdings and about half of them are commercial paper – short-term loans – and a lot of it would be, but we don’t know, du. Chinese commercial paper, “Cramer said, adding that even if Tether is not exposed to Evergrande, as it claims,” tons “of Chinese companies could be crushed due to exposure to Evergrande and this could trigger a fall of dominoes.
Why is this important:
Cramer said it’s not just Tether’s investors who are at risk, but that a fall in such a scenario “will drain the entire crypto ecosystem.” The former hedge fund manager said that “if you own any crypto in any form” book profits implying that such a drop would impact major cryptocurrencies like Bitcoin, Ethereum, Dogecoin and maybe even crypto-play stocks.
Bitcoin and Ethereum are trading significantly lower amid a market sell-off triggered by growing fears that Chinese real estate giant Evergrande’s current debt could lead to a collapse. Evergrande is a major real estate developer in China and also has several other business units operating in sectors such as healthcare and electric vehicles. The company has total liabilities of over $ 300 billion and recently warned investors that it could default on its debts.
Price action: BTC was trading down 1.31% at $ 43,111.67 at press time on Tuesday. ETH rose 1.2% to $ 3,041.75. Dogecoin (CRYPTO: DOGE) was trading down 2.79% at $ 0.21.
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