Jim Cramer urges investors to take some crypto profits, citing Evergrande-related risks

CNBC’s Jim Cramer urged investors who have gains in their cryptocurrency portfolios to take some profits, saying Monday he believes digital currencies are likely to face more weakness related to struggling Chinese property developer Evergrande.

“I know the crypto-lovers never want to hear me say sell, but if you’ve got a big gain as I did, well, I’m begging you to,” the “Mad Money” host said. “Don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout.”

Cramer said his crypto concerns right now begin with tether, a stablecoin that’s pegged to the U.S. dollar. Tether is the third-largest cryptocurrency by market value, trailing only ether and bitcoin, which are second and first, respectively. Cramer has a position in ether, which runs on the Ethereum blockchain.

“The problem with tether is that it’s backed by various holdings and roughly half of those are commercial paper — short-term loans — and much of that is believed to be, but we don’t know, Chinese commercial paper,” Cramer said.

“Tether said they have no Evergrande exposure,” Cramer acknowledged. “But tons of Chinese businesses stand to get crushed by this fiasco, and they have Evergrande exposure, and that could spell real trouble if the dominoes fall here.”

Evergrande is a major property developer in China, and beyond real estate, it has multiple other business units operating in industries such as health-care services and electric vehicles. The company has more than $300 billion in total liabilities and recently warned investors it may default on its debts.

Crypto investors need to be alert while the Evergrande situation unfolds even if they don’t personally own tether because the stablecoin is used to purchase bitcoin and ether, Cramer said. “If tether collapsed, well, then it’s going to gut the whole crypto ecosystem,” he said. “So if you own crypto in any form and you’ve got big gains, I recommend taking something off the table.”

Cramer stressed he still sees potential for cryptocurrencies to go “mainstream,” but believes it’s important to lock in at least some gains while they’re still there. “Right now, owning crypto is what’s known as a ‘crowded’ trade and I don’t want you to lose money if this space keeps getting hit by Evergrande’s contagion worries,” he said.

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[calebjones]

In few months or no time people will definitely start kicking themselves in regret for missing the opportunity to buy or invest in cryptocurrency.

[madhusudhanreddy]

Opposite. If he says sell then its time to buy. We all know what he is. hedgey🤡

[edwardduda]

What is he smoking? We're in a dip. It'll go back up. I gotta say, this is why I take CNBC with a grain of salt. All you guys do is push your portfolios. Like Jim, we all know why you're telling people to sell, it's so you can buy crypto at a lower price.

[capcrunch]

Take profits off a 1p percent down day?

[NichoD]

Oops too late to take crypto profits, already lost them all over the last 2 days

[andrew-dyuc]

as a way out, you also could take stables like tether and wait for the upcoming pump

[DouglasAmorim]

So Jim is trying to buy btc but in this moment I just have eyes for Block Monsters!

[informotica]

Please talk about the game block Monsters we want to know

[danielmcarthur]

Heck NA DIAMOND HANDS baBY!!!! Time to

[luizinho]

Ótimo vídeo! Se pudesse fazer algum conteúdo relacionado a jogos NFT's séria ótimo. Tem um jogo novo chamado Block Monster e gostaria de ouvir sua opinião em relação a ele.

[benjitheploymath]

His voice is almost as volatile as the crypto market

[darinscotto]

I have been investing in stock since 2013, but I must confess that since I started trading and buying crypto I have made more, this is the FOMO September for incoming dip in October. It is manipulated but that can be a good thing if you understand it. We should all know that when these reports are bullish take some off to the side lines, when news gets bearish start buying. "Keep it simple simple" that bear/ correction was the best thing that happened me. but all thanks to Kevin Kuria John for his amazing skills for help me to earn 17 BTC through trading chart. I believe we are in the spring phase

[Scottyo]

On this recommendation. I am buying more crypto.

[whitelions]

This dude just wants BTC to go down so he can buy low 🤣

[canalda]

ATé parece que o amigo quer comprar as bitcoins na baixa e torc para elas cairem. Elas vao cair sim.E vao puxar NFTs junto como o Block Monsters um dos melhores jogos. Porem, com certeza ela vai subir alavancada por fatoes externos e pela propria compra ja que ela eh uma Crypto limitada. Entao fiquem calmos

[markfox]

Teether coin has huge exposure to Evergrande. Cash and equivalents right? Evergrande represents a majority of equivalents

[matthewpithers]

Taking crypto advice from Jim is like taking diet advice from Santa Claus. He wants your coin!! We only Buy or Hodl

[ballinv]

Tether is always = 1 dollar. So it might be the market cap going down? I dont get it.

[Lcan]

Nice video man. You know Blockmonster? It's a new NFT game that is based on Pokemon, the design is amazing! Make a video for us about this game, pls

[shnxvjk]

Jim cramy "buy" = Sell now / "sell" = buy more !