Tether has been called out by one of the most influential economists in the world, Nouriel Rubini, harshly criticizing the controversial company.
Renowned economics professor Nouriel Roubini (also known as Dr. Doom) has criticized Tether for being a scam that is meant to artificially increase the price of bitcoin. He believes that without this ‘criminal manipulation’ the price of bitcoin would experience a 80% crash and the American financial market regulators are failing to bring this fraud to an end.
“Regulators asleep at the wheel while $2 billion of fake $ created via this scam, half of it since December. Not even North Korea created so many fake $ backed by nothing,” said Roubini in a tweet. “Regulators are just ‘looking’ and doing little so far while swindlers, charlatans, scammers, criminals, carnival barkers are in full action in the crypto-universe,” he added in a separate tweet.
Roubini rose to fame when he predicted the economic crisis and housing bubble crash of 2007-2008. Aside from being a teacher at New York University’s Stern School of Business and a chairman of the economic consultancy Roubini Macro Associates, he is also a prominent figure in financial mass media. Such credentials are hard to ignore, even by US regulators and Tether. Roubini has also called repeatedly for an audit of Tether, touching a point which many in the cryptocurrency world are afraid of doing.
This isn’t Dr Doom’s first shot at the cryptocurrency world. He has stated in the past that: “Gold is another scam with scammers peddling it all day long on Fox TV commercials to clueless retails investors – grandpas & grandmas – & charging them prices above market + gouging fees. And now all the fanatic lunatic gold bugs have become Bitcoin bugs. Gold & BTC: two scams.“
Bitcoin holders can relax though, Rubini has had other theories on cryptocurrencies which have been proven wrong.