Outstanding economist Nouriel Roubini has expressed his skepticism on the developments pertaining to the FTX saga questioning the bailouts within the cryptocurrency trade.
“First FTX bails out collapsing crypto Ponzi scams. Now FTX is collapsing & being bailed out by Binance. However who will bail out Binance when that crappy home of playing cards collapses? Crypto is Mom Of All Ponzi Schemes! Binance set to rescue crypto rival FTX,” Roubini tweeted.
First FTX bails out collapsing crypto Ponzi scams. Now FTX is collapsing & being bailed out by Binance. However who will bail out Binance when that crappy home of playing cards collapses? Crypto is Mom Of All Ponzi Schemes!
Binance set to rescue crypto rival FTX https://t.co/7WJGZfJUZI
— Nouriel Roubini (@Nouriel) November 8, 2022
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Binance signed a non-binding settlement on Tuesday to purchase FTX’s non-U.S. unit to help tide over a liquidity crunch on the rival alternate. The general cryptocurrency market capitalization dropped on Tuesday on the heels of Binance promoting its place in FTX token FTT/USD. The value of FTT dropped considerably and pulled down high cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD.
Misnomer: Speaking concerning the asset in an earlier interview, Roubini had noticed that it’s a misnomer to name them cryptocurrencies as “they don’t seem to be currencies by any cheap definition.”
“Whenever you have a look at the pricing of those cryptocurrencies, they appear to be typical bubbles. You might have exponential will increase within the worth of the belongings completely unrelated to the underlying basic worth. Bitcoin’s personal inflation within the three years earlier than its peak was a lot worse than the Tulipmania or the South Sea Bubble or the Mississippi Bubble,” he had defined.
Roubini cited the instance of Isaac Newton who made a major loss within the inventory market.
“Isaac Newton misplaced his shirt by investing late within the South Sea Bubble — simply to provide you an instance displaying that even very, very sensible individuals might be taken by the frenzy and the mania of asset costs rising as a result of all people else is shopping for. And right here we’re speaking about individuals not almost as subtle as Newton,” he had advised Octavian Report.
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Photo: World Financial Discussion board On Flickr
