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Roubini thinks the crypto industry might collapse if Tether and Bitfinex are indicted later this year.
In an interview on CoinDesk Tv, NYU economics professor Nouriel Roubini criticized the recent crypto involvement of Elon Musk while the Tesla company stacked Bitcoin, calling it market manipulation. According to Roubini, the United States Securities and Exchange Commission (SEC) should investigate Musk on market manipulation charges.
Notably, Musk has in the past endorsed Bitcoin and Dogecoin through his Twitter account that has over 46 million followers. Hereby prompting a huge exodus of retail investors into the crypto market to purchase either of the advised digital assets. Tesla through its annual 10-K report with the US Securities and Exchange Commission on Monday highlighted that it has added Bitcoin to its balance sheet.
As a result, the Bitcoin market price spiked to hit its all-time new high. On the other hand, Musk was previously noted to have pumped Dogecoin through his tweets.
Roubini and His Thoughts about the Recent Move by Musk
According to Roubini, Musk’s activities should be scrutinized by the United States Securities and Exchange Commission. Furthermore, Roubini noted that public companies including Tesla Inc (NASDAQ: TSLA) and MicroStrategy Inc (NASDAQ: MSTR) are taking huge risks by adding Bitcoin to their balance sheet.
He cited that MicroStrategy stocks have been consolidating for the past couple of years but surged immediately after adding Bitcoin to its balance sheet.
Worth noting, MicroStrategy stocks have jumped approximately 420% in the past three months, and they are now up around 150% year-to-date. On the other hand, Tesla stocks are up approximately 424% in the past year and have managed to add 92%, and 14% in the past three months and year-to-date respectively.
With Tesla having over $1.5 billion worth of Bitcoin while MicroStrategy owning approximately 72,079 units of Bitcoins, Roubini thinks it’s irresponsible of the leadership to convert such a huge amount of the company’s share. Roubini reiterated that Bitcoin is a bubble whose collapse is imminent in the near future.
Notably, Roubini thinks the crypto industry might collapse if Tether and Bitfinex are indicted later this year.
Asked if his opinion on Bitcoin could change, Roubini stated that he does not find any value in Bitcoin and other ‘shitcoins’ that lack intrinsic value. Moreover, most global central banks are seeking to develop CBDCs that are much better in form according to Roubini.
As for Bitcoin manipulation by Musk before Tesla invested in it, it is not yet clear if the SEC will take it as manipulation or accepting the investable wave. Furthermore, the crypto industry is decentralized and no governing body can take responsibility for its governance.