Jim Cramer was the target of ire on social media on Friday after crypto trader Coinbase’s stock shot up just a week after the CNBC finance guru warned of an SEC probe into the company.
On July 26, Cramer tweeted: “The Coinbase roll over on a possible SEC investigation is very bad news given that we don’t even know what it’s about. But they were always hoping to avoid SEC scrutiny.”
Twitter users then posted screenshots showing Coinbase’s stock price soar by more than 16% on Thursday to above $106 a share.
Coinbase was trading at around $92 a share on Friday. In the last five days, the company’s stock has risen by more than 50%.
The crypto exchange announced on Thursday that it has entered into a partnership with investment giant BlackRock, the world’s largest asset manager, which will allow its institutional clients to buy digital currencies such as bitcoin.
The sharp rise in Coinbase stock price prompted critics on Twitter to dunk on Cramer.
“I don’t care if a company is the next Amazon. If Jim Cramer is recommending the stock I will never buy,” tweeted accountant and financial news analyst Genevieve Roch-Decter.
Another Twitter user noted: “Just one week after Jim Cramer became bearish on Coinbase, the stock ripped 89%.”
“Never take financial advice from Jim Cramer!” crypto podcaster Tony Edward tweeted.
Last month, an ex-Coinbase employee was arrested and charged for an alleged insider trading scheme.
Ishan Wahi, 32, worked as a product manager for Coinbase. The federal government alleges that Wahi tipped off his brother, Nikhil Wahi, and a friend about the company’s secret plans to begin offering certain cryptocurrencies.
Federal investigators allege that the three men were able to pocket $1.5 million in profits.
Coinbase said it launched its own internal investigation of the matter and that it turned over its findings to the Department of Justice.
[Written in collaboration with other media outlets with information from the following sources]
