February 5, 2023

Nouriel Roubini: "99% of cryptocurrencies are scams or failed projects"

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2 minutes.

Nouriel Roubini: "99% of cryptocurrencies are scams or failed projects"

New York University professor Nouriel Roubini called the cryptocurrency industry a criminal activity, and 99% of crypto assets are fraud and pyramid schemes.

Speaking at the World Economic Forum inDavos, Nouriel Roubini, chairman of Roubini Global Economics, a research company that studies international macroeconomic and market strategies, expressed his negative beliefs about the crypto industry. He mentioned the collapse of the FTX exchange and its founder Sam Bankman-Fried, who faces several fraud charges. According to Roubini, the situation with FTX is not an exception at all, but an increasing pattern in the industry.

The professor advised the public not toinvest in cryptocurrencies. According to his reasoning, 99% of bitcoin investors did not buy it at $1,000 or even $10,000 per coin. Most of them experienced the Lost Profit Syndrome (FOMO) in 2021, when Bitcoin skyrocketed from $20,000 to $69,000, and bought it at an inflated price. This means investors are shirtless, the crypto skeptic said.

“Bitcoin investors are not alone in their losses,after all, other crypto assets also fell by 90-95%. Of the 20,000 initial coin offerings, 80% were found to be fraudulent and 17% fizzled out. This means that 97% of ICOs were fraudulent or failed. Most of their organizers belong in prison, so you should stay away from cryptocurrencies, ”said Nouriel Roubini.

In November, Roubini lashed out atCEO of Binance Changpeng Zhao (Changpeng Zhao), calling it a "walking time bomb." Roubini is known to be a vocal opponent of cryptocurrencies, with the economist announcing work on a tokenized alternative to the US dollar in May.