New York University Professor Nouriel “Dr. Doom” Roubini, who warned in 2006 that the U.S. housing bust would cause a financial crisis, has described crypto and its recurring crises as the mother of all Ponzi schemes.
Roubini tweeted on Nov. 11 to his 560,700 followers: “99.9% of crypto should be banned or regulated out of existence as it is the biggest criminal scam in financial history! The crypto world must be made safer for investors and users. Recurring crises mean the industry must accept regulation and controls”.
The crisis at the collapsed crypto exchange FTX — which was preceded by recurring crises including the collapse of crypto lender Celsius, collapsed crypto firm Voyager, collapsed hedge fund Three Arrows Capital and collapsed digital tokens TerraUSD and Luna — has little do with cryptocurrency as a technology, financial commentator Frances Coppola wrote for Financial Times.
“Rather, it exposes what financial systems look like when there are insufficient checks and balances. Crypto people rail against central banks and regulators, but they exist for good reasons,” Coppola wrote.
An Iranian-American…
