“They are totally corrupt”: the harsh criticism of the crypto ‘bubble’ from a historic Wall Street analyst
The offensive of traditional investors against tools such as Bitcoin or Ethereum intensified after the fall of FTX.
The entire world of cryptocurrencies is facing a new wave of questioning after the fall of a giant specialized in these assets such as FTX, and now one of the most renowned Wall Street analysts, Nouriel Roubini, charged strongly against this type currency.
“It is an ecosystem that is totally corrupt,” said Roubini, an economist and professor at New York University who anticipated the stock market crash in 2008, and who since then has been one of the most listened to among investors who use traditional tools. like stocks and bonds.
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His statements were made in the middle of the Abu Dhabi Finance Week, where cryptocurrencies had a victory through Binance, the world’s leading digital currency platform. The United Arab Emirates enabled the company to offer financial services in the country, thus opening the door to the Middle East for this ecosystem.
Roubini participated in an interview with CNBC on the scene of the event, saying that he cannot believe that “Binance has a license to operate.” He further called the exchange a “walking time bomb” in his harsh presentation against the crypto world.
BITCOIN, ETHEREUM AND CRYPTOCURRENCIES: THE CRITIQUES OF NOURIEL ROUBINI
The FTX bankruptcy that occurred last week, which caused crypto corrals and the loss of billions of dollars to investors, had a “contagion effect” and also generated a sharp drop in the prices of other crypto prices. These investment options were already at values 70% lower than a year ago, as a result of the collapse of Celcius and Terra.
After these strong setbacks by cryptocurrency platforms in their quest to prevail in the market, Roubini considered that “unfortunately, this is a totally corrupt ecosystem. This is a lesson from recent weeks, these people should be out of here .”
In a sentence that directly targeted Binance, the prestigious analyst detailed that the exchange company “is banned in the United Kingdom and is being investigated by the United States Department of Justice for money laundering.” Something for which he does not understand how other countries allow him to operate in their territories.
Charlie Munger, partner and friend of Warren Buffett and current executive vice president of Berkshire Hathaway, also charged against the crypto world: “They are part fraud and part deceit. ” The 98-year-old historic investor compared these cryptocurrencies to businesses such as “child prostitution”, and called those who buy these assets “totally crazy”.