Nouriel Roubini, Dr. Doom, says 99% of crypto-currencies are scams and asks investors to stay away from them

New York University professor Nouriel Roubini, aka Dr. Doom, warned that “99.99% of crypto-currencies are a scam, a criminal activity, a true Ponzi bubble that will fail“. He advised investors to “stay absolutely away” from crypto, claiming that most people in the crypto space are “all crooks.“

Dr. Doom warns that almost 100% of crypto-currencies are scams.

Economics professor Nouriel Roubini, aka Dr. Doom, warned against crypto-currencies in an interview with Yahoo Finance Live Wednesday at the World Economic Forum in Davos, Switzerland.

Nouriel Roubini is a professor of economics and international business at the Stern School of Business at New York University (NYU). He is also president of Roubini Global Economics, a macroeconomic research and market strategy firm he co-founded. He told the media:

Literally, 99.99% of crypto is a scam, a criminal activity, a real Ponzi bubble that will fail.

Dr. Doom also shared his opinion on the collapse of the crypto-currency exchange FTX and its disgraced founder Sam Bankman-Fried (SBF). FTX filed for bankruptcy last November and SBF is currently facing several fraud charges, all of which he has pleaded not guilty to. “FTX and SBF are not an exception – they are a rule“, exclaimed Nouriel Roubini.

The New York University professor went on to advise against investing in crypto-currencies. He said that 99% of bitcoin investors have not bought crypto-currency securities at $1,000 or $10,000. “Most of them had FOMO [fear of missing out] in 2021, when it soared from $20,000 to $69,000“, he pointed out, insisting that 99% of bitcoin investors bought the crypto-currency well above the current market value.

Nouriel Roubini opined, “So they lost their shirt. It’s a nightmare.“Dr. Doom noted that bitcoin investors aren’t the only ones losing money, as other crypto-currencies”have fallen by 90%, 95%.“He added:”Of the 20,000 ICOs, officially 80% were a scam and another 17% went to zero. So that means 97% of them were either a scam or lost everything. “

Regarding crypto-currency investments, Nouriel Roubini advised:

You have to stay away. You absolutely have to stay away. And most of these people should literally be in jail – literally, they’re all crooks.

The NYU economics professor has long been a critic of crypto-currencies, saying most of their promoters are crooks. He called Binance CEO Changpeng Zhao (CZ) “walking time bomb.“

Recently, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that most crypto tokens will fail, urging investors not to FOMO in the asset class. Meanwhile, a former SEC enforcement official, John Reed Stark, warned that the SEC’s regulatory assault is just beginning.