“Scams” and Vanishing Cryptos? Jim Cramer’s Dire Warning for XRP, Dogecoin, and Litecoin

The crypto winter continues to send chills down investors’ spines, and now, CNBC’s ‘Mad Money’ host, Jim Cramer, has added fuel to the fire. In a recent broadcast, Cramer didn’t mince words, declaring that Ripple (XRP), Dogecoin (DOGE), and Litecoin (LTC), along with three other unnamed cryptocurrencies, are on the brink of disappearing. Is this just another sensationalist headline, or is there cause for concern? Let’s dive into what Cramer said and what it might mean for the crypto market.

Cramer’s Crypto Purge: Who’s on the Chopping Block?

During a recent appearance on CNBC’s ‘Squawk Box’, Cramer didn’t hold back his skepticism. According to cryptocurrency news source Daily Issues, he stated, “I haven’t found anyone who truly accepts these three digital assets yet.” This statement is a stark indictment of XRP, DOGE, and LTC, all of which are established cryptocurrencies with significant market capitalizations. For context, at the time of Cramer’s statement:

• Ripple (XRP): Ranked seventh in market cap.
• Dogecoin (DOGE): Ranked eighth in market cap.
• Litecoin (LTC): Ranked fourteenth in market cap.

Cramer’s negative rating isn’t new. He’s been a vocal critic, especially after the FTX collapse. But his latest comments seem to escalate his bearish stance on these specific altcoins.

“It’s All a Big Scam!” Cramer’s Explosive Accusations

Cramer’s criticism goes beyond just questioning their adoption. He’s explicitly labeled these cryptocurrencies as “scams.” Reflecting on the FTX debacle, he stated:

“This has absolutely nothing to do with blockchain. Blockchain is an excellent invention. However, most cryptocurrencies built on blockchains, including XRP, are scams. It’s all a big scam. It’s only I’m sick of con artists.”

These are strong words, especially coming from a mainstream financial commentator with a significant following. While he acknowledges the underlying technology of blockchain, he dismisses a large portion of the crypto market as fraudulent. But is this a fair assessment? Let’s consider the context.

Binance Under Fire: Worse Than FTX?

Cramer’s negativity extends beyond individual cryptocurrencies to major exchanges as well. He issued a stark warning to his 1.9 million Twitter followers about Binance, the world’s largest cryptocurrency exchange. His tweet compared Binance unfavorably to FTX, and even more surprisingly, to a gambling website:

“It is more trustworthy to entrust money to Draftkings than to Binance,” he said.

Comparing a leading crypto exchange to a casino website raises eyebrows. This statement suggests a deep distrust in the crypto exchange ecosystem, implying potential risks associated with even the largest players in the market.

Market Reaction: XRP, DOGE, and LTC Prices Plummet

Whether directly caused by Cramer’s comments or coinciding with broader market trends, XRP, DOGE, and LTC experienced significant price drops. According to CoinMarketCap data:

As of 5:34 pm on the 17th (Korean time):

• XRP: $0.3555, down 6.21% from 24 hours prior.
• Dogecoin (DOGE): $0.07783, down 9.84%.
• Litecoin (LTC): $64.92, down 11.02%.

These declines highlight the volatility of the cryptocurrency market and how sentiment, even from figures like Jim Cramer, can potentially influence price movements. It’s important to note that market fluctuations are complex and influenced by numerous factors, but Cramer’s pronouncements likely contributed to the negative pressure.

Is There Any Merit to Cramer’s Claims?

While Cramer’s delivery is often dramatic, it’s worth considering the underlying concerns he might be raising. Let’s break down each cryptocurrency he targeted:

Ripple (XRP)

XRP is designed for payment processing and aims to facilitate faster and cheaper international money transfers. It has partnerships with financial institutions, but also faces ongoing legal battles with the SEC, which alleges XRP is an unregistered security. This regulatory uncertainty is a significant challenge.

Dogecoin (DOGE)

Dogecoin started as a meme coin and gained massive popularity through online communities and celebrity endorsements. While it has a strong and passionate community, its fundamental utility is often questioned. Its price is heavily influenced by social media trends and speculation.

Litecoin (LTC)

Litecoin was created as ‘silver to Bitcoin’s gold,’ aiming to be a faster and cheaper alternative for transactions. It has been around for a long time and has a solid technical foundation, but it has struggled to maintain relevance in a rapidly evolving crypto landscape with many newer, faster, and more scalable blockchains.

Are They Really “Scams”?

Calling XRP, DOGE, and LTC outright “scams” might be an oversimplification. While they each have their challenges and criticisms, they also have active communities, development, and, in some cases, real-world use cases. However, Cramer’s point about the speculative nature of many cryptocurrencies and the potential for fraud within the space is valid.

The crypto market is still relatively young and unregulated. There have been numerous instances of scams, rug pulls, and projects that have failed to deliver on their promises. The FTX collapse serves as a stark reminder of the risks involved.

Navigating the Crypto Storm: What Should Investors Do?

Jim Cramer’s warnings, while potentially sensationalized, highlight the importance of caution and due diligence in the cryptocurrency market. Here are some actionable insights for investors:

• Do Your Own Research (DYOR): Don’t rely solely on the opinions of commentators, whether positive or negative. Understand the technology, use case, and risks associated with any cryptocurrency before investing.
• Diversify: Don’t put all your eggs in one basket. Diversify your investments across different asset classes, including and beyond cryptocurrencies.
• Manage Risk: Only invest what you can afford to lose. The crypto market is highly volatile, and losses are possible.
• Stay Informed: Keep up-to-date with market news, regulatory developments, and technological advancements in the crypto space.
• Be Skeptical: Approach crypto investments with a healthy dose of skepticism. If something sounds too good to be true, it probably is.

Conclusion: A Wake-Up Call or Just Noise?

Jim Cramer’s pronouncements have undoubtedly stirred the crypto pot. Whether his predictions of XRP, DOGE, and LTC vanishing will come true remains to be seen. His comments serve as a stark reminder of the risks and volatility inherent in the cryptocurrency market. While labeling established cryptocurrencies as outright “scams” might be debatable, his broader message about caution, due diligence, and the potential for market corrections is one that crypto investors should heed. In the turbulent world of crypto, perhaps a little bit of ‘Mad Money’ style skepticism isn’t such a bad thing after all. Ultimately, the future of XRP, Dogecoin, Litecoin, and the wider crypto market will be determined by innovation, adoption, and the ever-evolving regulatory landscape.