Scion Asset Management founder Michel Burry issued a series of tweets last week warning retail traders about cryptocurrencies and the so-called Stonks — the stocks unusually favored by retail investors — according to a Bloomberg News report.
What Happened: Burry, who deleted his tweets soon after, warned individual investors about losses “the size of countries” in the event of crypto and stonk declines.
“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry wrote in the social media posts as per Bloomberg.
“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.”
Why It Matters: The hedge fund manager became popular after making billions off bets against mortgage securities during the 2008 financial crisis and is known to have placed bets against Elon Musk-led Tesla Inc (NASDAQ: TSLA).
The physician-investor is known for “The Big Short,” a film in which he was played by Christian Bale. The movie is based on his bet against the U.S. housing market.
Burry, who has a stonk fan following, had a bullish stand on online video-game retailer GameStop Corp (NYSE: GME) last year but has changed his stance this year after the frenetic retail investor-led short squeeze earlier this year.
Burry has in the past deleted his tweets soon after posting them and some of his tweets had drawn a visit by the U.S. Securities and Exchange Commission, he had told his followers.
Rally in stonks like GameStop, AMC Entertainment Inc. (NYSE: AMC), Clover Health Investments Corp (NASDAQ: CLOV), and Orphazyme A S ADR (NASDAQ: ORPH) resumed this month amid renewed interest.
Meme-themed cryptocurrencies Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) have also registered a massive surge this year.
Price Action: At press time on a 24 hours basis, BTC traded 0.61% lower at $35,392.65, ETH traded 1.58% higher at $2,214.84, and DOGE traded 4.04% lower at $0.27.
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