- Solana rises 1,400% since Cramer’s 2022 critique.
- Jim Cramer is often satirized for bad takes.
- Still, the TV show host is not always wrong.
Solana has had a wild ride in the past two years, experiencing major volatility. After the FTX collapse, the token reached single digits, provoking significant criticism from analysts, including CNBC’s Jim Cramer.
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In 2022, Cramer dismissed Solana investors as “idiots,” when SOL was trading at $11. Fast forward to 2024, Solana is trading at $168, registering a 1400% increase since his comments. This has prompted social media users once again to point out the “Inverse Cramer” effect.
Jim Cramer Called SOL Holders ‘Idiots’
Despite major volatility in the past, Solana proved its critics wrong. In 2022, CNBC’s personality Jim Cramer, the host of the popular Investing Club TV show, dismissed altcoins like Solana. He went so far as to say that its investors are “idiots.”
“I think that everybody that holds these various coins, Solana, Litecoin… I do think you’re an idiot,” Cramer exclaimed. “These people who hold these things should not own them. They shouldn’t own them.”
At the time, SOL was trading at $11, beaten down by the collapse of FTX, a major investor in Solana. However, the token has since seen a remarkable comeback. Currently trading at $168, SOL rose over 1,400% since Cramer called out its investors.
Critics Cite ‘Inverse Cramer Effect’
Cramer’s prediction for Solana was not the only time he got it wrong. Due to his TV show, he gives out plenty of recommendations, many of which turn out to be bad. This even caused social media users to point to an “inverse Cramer effect,” suggesting that traders should do the opposite of whatever Cramer says.
The “Inverse Cramer” even became institutionalized when Tuttle Capital Management released an actual fund based on the idea. The idea behind the “Inverse Cramer ETF” (Inverse Cramer Tracker ETF) was simple, yet compelling. Media personalities provide analysis based on mainstream sentiment and headlines.
This means that when they give advice, the market has already priced it in. At the same time, personalities lack the specialized knowledge to find opportunities that are not already exploited. However, events have suggested that Cramer is not always wrong. In January this year, the fund was shut down after registering 15% in losses. In contrast, the S&P 500 was up 25% in that period.
On the Flipside
- Cramer’s takes continue to get attention on social media. In September, multiple social media users reacted to Cramer expressing bearish sentiment about Bitcoin. “Looks like we’re about to pump,” one user said.
Why This Matters
Cramer’s failed Solana prediction and the failure of the “inverse Cramer” serve as a reminder for investors to be wary of narratives. This is true whether they come from mainstream or contrarian sources.
Read more about Cramer’s takes on crypto:
Jim Cramer Does It Again: Bitcoin Rebounds
Read more about Solana’s ecosystem growth:
Solana dApp Investment Reaches New Peaks: Breaking Down Q3 Performance
