Nouriel Roubini, professor at New York University, USA, said 99 percent crypto is scam or fraud, crime and the Ponzi bubble about to burst.
In an interview with Yahoo Finance at the World Economic Forum (WEF) event in Davos, Switzerland, rubini advise investors to stay away from assets altogether crypto. The reason, according to almost all market players crypto is a fraud.
Roubini is a professor of economics and international business at New York University (NYU) Stern School of Business. He also serves as chairman of Roubini Global Economics, the global macroeconomic research and market strategy firm he co-founded.
“99 percent of cryptocurrencies are fraud, criminal acts and a Ponzi bubble that is about to burst,” explained Roubini, quoted from News.Bitcoin.com.
ADVERTISEMENT
The man nicknamed Dr. Doom, aka Doctor of the Apocalypse, shared his opinion regarding the crypto exchange FTX which has gone bankrupt and its founder, Sam Bankman-Fried (SBF), who is being investigated.
According to Roubini, cases like FTX are not the exception, but the norm in asset markets crypto. Another case where customers lose all their funds is in crypto exchanges QuadrigaCX in 2019.
The NYU professor advised people to stay away from crypto and not invest in crypto. He said 99 percent of Bitcoin (BTC) investors don’t buy at US$1,000 or US$10,000.
“The majority of Bitcoin investors experience FOMO fear of missing out in 2021 when the price will skyrocket from US$20,000 to US$69,000,” said Roubini.
ADVERTISEMENT
In other words, the majority of investors crypto BTC buys it above the current price, so it is in a big loss position. This is a nightmare, added Roubini.
In addition, from 20 thousand initial coin offering (ICO), 80 percent are fraud and 17 percent have zero value. That is, 97 percent of the ICOs that flourished in 2017-2018 were scams or lost all value.
Regarding crypto investment, Roubini advised investors to stay away from crypto. He said almost all those who offer crypto products should be jailed because they are fraudsters.
As an economics professor, Roubini has long been a critic of the industry crypto under the pretext that almost all the perpetrators are impostor. He called Binance CEO Changpeng Zhao a walking time bomb.
Not long ago, the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler, warned that the majority of crypto assets would fail. He appealed to investors not to be FOMO buying crypto assets.
Former SEC law enforcement John Reed Stark said the SEC’s increased assertiveness regarding dynamics crypto in society will start in the near future. [ed]
