Dr. Doom believes “99.99% of crypto is a hoax, a criminal operation, a whole real-bubble pyramid scheme that will bust. Nouriel Roubini, also known as “Dr. Doom,” is an economics professor. On Wednesday, at the World Economic Forum in Davos, Switzerland, he talked to Yahoo Finance Live about his worries about cryptocurrencies.
Dr. Roubini teaches economics and international business at NYU’s Stern School of Business. He is also the chairman of Roubini Global Economics, a company he helped start that studies international macroeconomics and business strategy. In an interview, he stated:
“Literally, 99.99% of crypto is a scam, a criminal activity, a total real-bubble Ponzi scheme that is going bust.”
Dr. Doom also expressed his thoughts on Sam Bankman-Fried (SBF), the disgraced founder of the defunct cryptocurrency exchange FTX. SBF is currently dealing with various fraud accusations, to which he has pleaded not guilty, while FTX declared bankruptcy last November. According to Roubini, “FTX and SBF are the rules, not the exception.”
He has been critical of cryptocurrencies for a long time, saying that scammers back most of them. He referred to Changpeng Zhao, the CEO of Binance, as “a walking time bomb.”
Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), recently warned investors against FOMO in this asset class and said that most crypto tokens would fail. John Reed Stark, a retired SEC enforcement official, warned that the SEC’s bombardment of regulations is just getting started.
