Solana Proves Jim Cramer Wrong, Rises 1,400% Since Critique

Since Jim Cramer slammed Solana investors as โ€œidiotsโ€ in 2022, the value of SOL rose over 1,400%.

Jim Cramer posing in a clown's hat and a super blingy Bitcoin chain, smiling confidently.
Created by Gabor Kovacs from DailyCoin
  • 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 CNBCโ€™s Jim Cramer.ย 

Sponsored

In 2022, Cramer dismissed Solana investors as โ€œidiots,โ€ 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 โ€œInverse Cramerโ€ effect.

Jim Cramer Called SOL Holders โ€˜Idiotsโ€™

Despite major volatility in the past, Solana proved its critics wrong. In 2022, CNBCโ€™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 โ€œidiots.โ€ 

โ€œI think that everybody that holds these various coins, Solana, Litecoinโ€ฆ I do think youโ€™re an idiot,โ€ Cramer exclaimed. โ€œThese people who hold these things should not own them. They shouldnโ€™t own them.โ€ 

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 โ€˜Inverse Cramer Effectโ€™

Cramerโ€™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 โ€œinverse Cramer effect,โ€ suggesting that traders should do the opposite of whatever Cramer says.ย 

The โ€œInverse Cramerโ€ even became institutionalized when Tuttle Capital Management released an actual fund based on the idea. The idea behind the โ€œInverse Cramer ETFโ€ (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.ย 

On the Flipside

  • Cramerโ€™s takes continue to get attention on social media. In September, multiple social media users reacted to Cramer expressing bearish sentiment about Bitcoin. โ€œLooks like weโ€™re about to pump,โ€ one user said. 

Why This Matters

Cramerโ€™s failed Solana prediction and the failure of the โ€œinverse Cramerโ€ serve as a reminder for investors to be wary of narratives. This is true whether they come from mainstream or contrarian sources.ย 

Read more about Cramerโ€™s takes on crypto: 
Jim Cramer Does It Again: Bitcoin Rebounds

Read more about Solanaโ€™s ecosystem growth: 
Solana dApp Investment Reaches New Peaks: Breaking Down Q3 Performance 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
David Marsanic

David Marsanic is DailyCoinโ€™s journalist, focusing on Solana and crypto exchanges. David currently doesnโ€™t hold any crypto.

Read more