Jim Cramer was the target of social media ire Friday after shares of cryptocurrency trader Coinbase soared just a week after the CNBC financial guru warned of an SEC investigation into the company.
On July 26, Cramer tweeted: “Coinbase’s reversal on possible SEC investigation is very bad news given that we don’t even know what it’s about. But they always hoped to avoid SEC scrutiny.”
Twitter users posted screenshots showing Coinbase’s stock price rising more than 16% on Thursday above $106 a share.
Coinbase was trading at around $92 per share on Friday. In the past five days, the company’s shares have risen more than 50%.
The crypto exchange announced on Thursday that it has signed 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’s stock price prompted critics on Twitter to turn on Cramer.
“I don’t care if a company is the next Amazon. If Jim Cramer recommends the stock, I will never buy,” tweeted accountant and financial news analyst Genevieve Roch-Decter.
Another Twitter user noted: “Just a week after Jim Cramer turned bearish on Coinbase, shares tumbled 89%.
“Never take financial advice from Jim Cramer!” Crypto podcaster Tony Edward tweeted.
Last month, a former Coinbase employee was arrested and charged with an alleged insider trading scheme.
Coinbase shares rose after the company announced a partnership this week with BlackRock.SOPA Images/LightRocket via Gett
Ishan Wahi, 32, worked as a product manager for Coinbase. The federal government alleges that Wahi informed his brother, Nikhil Wahi, and a friend of the company’s secret plans to begin offering certain cryptocurrencies.
Federal investigators allege the three men were able to pocket $1.5 million in profits.
Coinbase said it launched its own internal investigation into the matter and turned its findings over to the Department of Justice.
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