Cryptocurrency

Roubini says 99% of crypto is a scam – ‘you have to stay away’

Hull Invest

Nouriel Rubini He reiterated his objection to crypto and warned people to stay away as 99% of crypto is a scam.

“FTX, SBF are no exception. They are the rules. Nearly 99% of cryptocurrencies are scams, criminal activity, bubbles, Ponzi schemes.

Roubini has a long history of voicing negative opinions about digital assets. for example, crypto slate More than two years ago, The American Economist condemned Bitcoin’s value proposition, saying it had no place in investment portfolios due to its lack of intrinsic value, widespread market manipulation, and extreme price volatility.

Riding on the recent FTX turmoil, Roubini has taken this opportunity to restate his negative opinion of the cryptocurrency sector. But does he have a point?

crypto is a scam

Roubini told Yahoo Finance at the Davos conference that millions of disadvantaged individuals, including “young people, low-income earners or minorities,” are the top buyrs of bitcoin. I explained that I was obsessed with it.

“Most of them got FOMO when FOMO surged to 20, 30, 50, 69 in 2021. [thousand dollars], and 99% of them bought well above their current market value. So they lost their shirt. “

He went on to say, “It’s just Bitcoin,” while altcoins deteriorated throughout the bear cycle, with some losing “95%” of their value. Officially it’s 80% fraud and 17% zero,” and the people behind it belong in prison.

When stressed the value of blockchain and distributed ledger technology (DLT) over cryptocurrencies, Roubini said he remained skeptical.

Roubini gives the example of using DLT to verify organic tomatoes to verify that the farm uses organic growing methods and that the product in the store is the same as farm-verified. need further verification.

“Once you have tested it and confirmed that the tomatoes are organic, you can put them in a central database that is cheaper and better than DLT. So the idea that DLT creates trust is not possible. , you will always need a trusted authority to validate your transactions.”

Is Roubini correct?

The accuracy of Roubini’s percentage data is questionable, as is the loose use of the term “ICO”.

However, given the events of 2022, even the most ardent cryptocurrency advocate will admit that he has a point.

Most Upvoted Comments on Cryptocurrency Reddit post Discussing the interview agreed with Roubini’s general assumptions about the prevalence of fraud.

“Basically yes. We release 100-1000 tokens every day and in a few minutes or hours it could be over 90%.”

Most other comments echo that view, with one stating that the 99% fraud rate is a conservative estimate.

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