'Wolf of Wall Street' Says Cryptocurrencies Are Pump and Dump Schemes

Bitcoin and other cryptocurrencies are a pump and dump scheme.

That's the take of the "Wolf of Wall Street," Jordan Belfort. He's in a position to know -- Belfort's Stratton Oakmont was shuttered in the 1990s for running a pump and dump operation.

According to Belfort, "At this point in time, the money has been made in bitcoin already."

The only way to make money in cryptocurrencies right now would be to create a new coin, push the price higher and sell at the top, Belfort said. "This is what we did at Stratton. Keep the old one high enough so that they'll still believe in the overall system."

Because cryptocurrencies' underlying technology hasn't been patented, anyone can utilize blockchain to create their own coin.

Belfort, a staunch critic of bitcoin, is presenting his Straight Line Persuasion method in a Synergy Global Forum Masterclass in New York Feb. 22.

Watch our full interview with The Wolf of Wall Street on Youtube

Editors' Pick: Originally published on February 8, 2018.