Cryptocurrency is no stranger to critics, especially because of the revolutionary way it has changed the world of money. Proponents and opponents alike have used social media outlets and interviews to discuss major coins, like Bitcoin and Ethereum. Nouriel Roubini is probably one of the most prominent critics, earning the name Dr. Doom, and he’s back on Twitter with another rant.
Roubini, who has likened Ethereum’s Vitalik Buterin to dictator Kim Jong-un, and who has called the original cryptocurrency “crap,” brought up a study against ICOs in a reposted tweet.
Initial coin offerings: Fundamentally different but highly correlated https://t.co/62jOZkAEI1
— Fabrizio Goria (@FGoria) March 26, 2019
The study, posted by Fabrizio Goria, starts off by saying that there should not be much of a connection between the price of BTC and ETH in comparison with ICO tokens, based on their “business cases.” Roubini commented that the study shows 81% of ICOS being scams in their time. Considering that he says the price correlated, he deduced that the connection between ICOs and the price of Bitcoin and Ethereum should be enough to show that the ICOs were “criminal scams.”
81 percent of all ICOs were scams in the first place according to a reputable study. So it is no wonder that their price was highly correlated with that of BTC or ETH once the crypto bubble went bust in 2018. That price correlation confirms that they were mostly criminal scams https://t.co/8WOnxOURVj
— Nouriel Roubini (@Nouriel) March 26, 2019
The study showed that the ICOs were “fundamentally different” but still had a “highly correlated” connection. Elaborating, it suggested two interpretations of the data, with the first being that the ICO market still has plenty of room to mature and will eventually be “very distant relatives” to the top two coins. On the other hand, ICOs could basically just be “children of the hype” that will “share the fate” of the more notable assets.
Roubini is one of the first opponents of the market to say that it is nothing more than a big scam on its investors. He even alleged that the 2017 Bitcoin surge was the mother and father of all bubbles. Still, it looks like Roubini has been holding on to the assumption that he is an expert in the world of finance ever since his prediction of the 2008 recession.