Jim Cramer was the target of social media ire Friday as shares of crypto trader Coinbase surged just a week after the CNBC finance guru warned of an SEC investigation into the company.
On July 26, Cramer tweeted: “Coinbase filing for potential SEC investigation is very bad news as we don’t even know what it’s about. But they always hoped to avoid SEC scrutiny.”
Twitter users then posted screenshots showing Coinbase’s stock price rising more than 16% on Thursday to over $106 a share.
Coinbase was trading at around $92 per share on Friday. In the last five days, the company’s shares have risen by more than 50%.
The crypto exchange announced on Thursday that it has entered into 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 led critics on Twitter to lash out at Cramer.
“I don’t care if a company is the next Amazon. If Jim Cramer recommends the stock, I will never buy it,” accountant and financial news analyst Genevieve Roch-Decter tweeted.
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 in an alleged insider trading scheme.
Ishan Wahi, 32, worked as a product manager for Coinbase. The federal government alleges that Wahi tipped off his brother, Nikhil Wahi, and a friend about the company’s secret plans to begin offering certain cryptocurrencies.
Federal investigators allege the three men were able to collect $1.5 million in profits.
Coinbase said it launched its own internal investigation into the matter and submitted its findings to the Department of Justice.
