In his latest tweet, Roubini cited a study that attacked ICOs and connected the shady functions of ICOs to the prices of Bitcoin and Ethereum. Roubini’s tweet read,
“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.”
The study quoted by Roubini stated that ICOs were ‘fundamentally different but highly correlated.’ The study said,
“There are two interpretations of this pattern. The benign one is that the ICO market is still in its infancy and will need to mature. When ICOs grow up, we might expect them to be seen as very distant relatives of Bitcoin or Ethereum and to be priced according to their own merit. The alternative is that ICOs were just one of the children of the hype and are likely to share the fate of major cryptocurrencies.”
Roubini’s tussle with the cryptocurrency market has been ongoing since its inception, with Roubini being one of the first people to label it a ‘scam’ and a ‘fraud.’ He also commented on the 2017 Bitcoin bubble, labeling it the mother and father of all bubbles. The economist who shot to fame after he was one of the first people to predict the 2008 financial recession attacked Bitcoin’s underlying technology and lack of fundamental value.