New York University Professor Nouriel Roubini, aka Dr. Doom, warned that “99.99% of cryptocurrency is a scam, a criminal activity, a total real bubble Ponzi scheme that is bankrupt” . He advised investors to “absolutely stay away” from cryptocurrencies, claiming that most people in the cryptocurrency space are “all criminals.”
Dr. Doom Warns Nearly 100% of Crypto Is a Scam
Economics professor Nouriel Roubini, also known as Dr. Doom, warned against cryptocurrencies in an interview with Yahoo Finance Live on Wednesday at the World Economic Forum in Davos, Switzerland.
Roubini is Professor of Economics and International Business at the New York University (NYU) Stern School of Business. He also serves as Chairman of Roubini Global Economics, a global macroeconomics and market strategy research firm that he co-founded. He told the news outlet:
Literally 99.99% of cryptocurrency is a scam, a criminal activity, a total real bubble Ponzi scheme that is falling apart.
Dr. Doom also shared his opinion on the collapse of crypto exchange FTX and its disgraced founder Sam Bankman-Fried (SBF). FTX filed for bankruptcy last November and SBF is currently facing various fraud charges, to which it has pleaded not guilty. “FTX and SBF are not an exception, they are the rule”, exclaimed Roubini.
The NYU professor proceeded to advise against investing in cryptocurrencies. He claimed that 99% of bitcoin investors did not buy BTC to $1,000 or $10,000. “Most of them got FOMO (fear of missing out) in 2021 when it skyrocketed from $20,000 to…$69,000,” he emphasized, stressing that 99% of bitcoin investors bought the cryptocurrency “well above the value of current market”.
Roubini opined: “Then they lost their shirts. It’s a nightmare.” Dr. Doom noted that bitcoin investors aren’t the only ones losing money, as other cryptocurrencies “have fallen 90%, 95%.” He added: “Of 20,000 ICOs (initial coin offerings) ), officially 80% were scams and another 17% went to zero. That means 97% of them…were scams or lost everything.”
Regarding crypto investing, Roubini advised:
You have to stay away. You have to absolutely stay away. And most of these people literally belong in jail, they are literally all thieves.
The NYU economics professor has long been a vocal critic of cryptocurrency, stating that most cryptocurrency advocates are scammers. He called Binance CEO Changpeng Zhao (CZ) “a walking time bomb.”
Recently, US Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that most crypto tokens will fail, urging investors not to FOMO this asset class. Meanwhile, a former SEC enforcement official, John Reed Stark, has warned that an SEC regulatory onslaught is just beginning.
What do you think about New York University professor Nouriel Roubini’s crypto warnings? Let us know in the comments section.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
