Nouriel Roubini Says ‘Literally 99% Of Crypto Is A Scam’
Nouriel Roubini, an American economist, recently made bold claims about the cryptocurrency industry, stating that ‘literally 99% of crypto is a scam’. Dr. Roubini, who is also known as “Dr. Doom” for his bearish views on the global economy, accused the crypto sector of financial fraud and theft. He labelled most of the cryptocurrencies as “pure scams”.
Cryptocurrency’s Record of Fraud and Theft
Over the years, there have been several reports of financial fraud and theft in the growing cryptocurrency industry. Some of the major cases have been reported in recent times, such as the $550 million Coincheck hack of 2018 and the QuadrigaCX scandal of 2019. These two cases alone reflect the danger and unethical practices present in the industry.
Accusing ICOs of Scams
Dr. Roubini accused Initial Coin Offerings (ICO) of scamming innocent investors. He said that most of the ICOs were frauds, designed to make money off of people’s lack of knowledge. He alleged that many of the tokens being sold had no real use case and were simply being marketed with fake promises and exaggerated claims.
The Question of Legitimacy
Dr. Roubini said that cryptocurrencies have failed to become a legitimate form of money. He pointed out that the vast majority of cryptos are illiquid and have no real use case. He questioned the legitimacy of cryptocurrencies and accused their creators of running “pump and dump” schemes.
How To Invest in Crypto Safely
Though there are many reports of fraud and theft in the crypto space, there are still ways to safely invest in cryptocurrency. Here are some tips for investing in crypto safely:
- Do Your Own Research: Take the time to thoroughly research the cryptocurrencies you plan to invest in. Read the project’s white paper and make sure to ask any relevant questions.
- Use A Reputable Exchange: Make sure to use a reputable and regulated cryptocurrency exchange. This will help ensure the safety of your funds and also reduce the chances of fraud.
- Don’t Invest More Than You Can Afford: Crypto markets can be unpredictable and highly volatile, so it’s important to never invest more than you can afford to lose.
Dr. Roubini’s claims about the crypto industry have stirred up strong emotions from both sides of the debate. Though there have been cases of fraud, theft, and bad practice, there are still ways to invest responsibly and safely in cryptocurrencies.