New York University Professor Nouriel Roubini, aka Doom, warns that “99.99% of crypto is a total real bubble Ponzi scheme that is fraud, criminal activity and bankrupt.” He claimed that most people in the crypto space are “all con artists” and advised investors to “stay absolutely away” from crypto.
Dr. Doom warns that almost 100% of crypto is a scam
Dr. Doom, economist Nouriel Roubini, warned about cryptocurrencies in an interview with Yahoo Finance Live on Wednesday at the World Economic Forum in Davos, Switzerland.
Roubini is a professor of economics and international business at New York University’s (NYU) Stern School of Business. He is also chairman of Roubini Global Economics, a global macroeconomic and market strategy research firm that he co-founded. He told the news outlet:
Literally 99.99% of crypto is a complete real bubble Ponzi scheme that is fraudulent, criminal activity, and bankrupt.
Dr. Doom also shared his opinion about the collapsed crypto exchange FTX and its disgraced founder Sam Bankman-Fried (SBF); FTX filed for bankruptcy last November and SBF is now facing several fraud charges, all of which He has pleaded not guilty to all of them. Rubini exclaims, “FTX and SBF are the rule, not the exception.”
The NYU professor continued his advice against investing in cryptocurrencies. He stated that 99% of bitcoin investors did not buy BTC for $1,000; they did not buy BTC for $1,000 or $10,000.” Most of them had bought BTC at prices ranging from $20,000 to . . got FOMO (fear of missing out) in 2021 when it soared to $69,000,” stressing that 99% of bitcoin investors bought the cryptocurrency “much higher than the current market value.”
Roubini added, “So they lost their shirts. It is a nightmare.” Dr. Doom noted that bitcoin investors are not the only ones losing money, as other cryptocurrencies have “fallen 90% or 95%.” He added, “Of the 20,000 ICOs [initial coin offerings], officially 80% were scams, and another 17% went to zero. In other words, 97% were… . were either scams or lost everything.”
On crypto investing, Roubini advises:
You must stay away. You absolutely must stay away from them. And most of these people literally belong in jail – literally, they are all crooks.
An economics professor at NYU has long been a vocal critic of cryptocurrencies, claiming that most crypto supporters are crooks. He called Binance CEO Changpeng Zhao (CZ) a “walking time bomb.”
Recently, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that most crypto tokens will fail and urged investors not to FOMO this asset class. Meanwhile, former SEC Enforcement Officer John Reed Stark warned that the SEC’s increased regulation is just beginning.
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