Roubini slams cryptocurrencies again at the WEF event in Switzerland.
In the wake of the collapse of the crypto exchange FTX, renowned economist professor Nouriel Roubini has fired shots at cryptocurrencies, labeling 90% of crypto assets a scam.
At the World Economic Forum (WEF) conference in Davos, Switzerland, Roubini described cryptocurrencies as a criminal activity and a bubble that will soon be deflated.
“Literally 90% of crypto is a scam. A criminal activity. A total real-bubble Ponzi scheme that is going bust,” Roubini, nicknamed Dr. Doom for his negative forecasts on global trends.
Roubini Continuously Criticize Crypto and Binance CZ
Roubini’s comment may be familiar to many cryptocurrency enthusiasts. The veteran economist has been a vocal critic of crypto assets. Binance’s CEO has been a victim of Roubini’s criticisms.
Following the collapse of FTX in November, the outspoken economist described the cryptocurrency ecosystem as totally corrupt. Roubini, who spoke at a panel hosted by CNBC’s Dan Murphy at the Abu Dhabi Finance Week, said there are seven C’s of crypto: “Concealed, corrupt, crooks, criminals, con men, and carnival barkers.”
He added Binance founder Changpeng Zhao popularly known as “CZ”, as the last “C” of crypto. Dr. Doom continued lambasting Binance CZ, saying Abu Dhabi regulators should exercise caution with the Binance CEO because he is “a walking time bomb.”
“I can’t believe that CZ and Binance have a license to operate in the UAE. He’s banned in the U.K., he’s under investigation by U.S. Justice Department for money laundering,”
FTX Collapse Gave Critics A Voice
Roubini became a more vocal critic of cryptocurrencies in the wake of the FTX fall. Recall that the cryptocurrency exchange suffered an epic collapse last year that sent shock waves to the global crypto market.
While FTX filed for Chapter 11 bankruptcy protection in the U.S., its founder, Sam Bankman-Fried, is facing a series of charges, including securities and wire fraud.
Commenting on the FTX collapse, Roubini said the lesson to be learned from the incident is that people should leave the market. The collapse of FTX gave crypto critics ammunition to go after the emerging market.
As reported by TheCryptoBasic, veteran economist Peter Schiff saw the collapse of FTX as an opportunity to push the Bitcoin selling narrative. In a November 17 tweet, Schiff said the world’s largest cryptocurrency has a long way to fall because many people would be forced to sell the asset to pay their bills. When Schiff made the comment, Bitcoin was trading at around $16,700.
Interestingly, the world’s largest cryptocurrency by market cap is up over 20% since Schiff made the comment. At press time, Bitcoin is changing hands at $20,700.