Cornell University Professor: Misleading Promises and Hype Intensify Risks in Cryptocurrency

ChainCatcher news, according to Bitcoin.com, Eswar Prasad, a professor at Cornell University's Dyson School and a senior fellow at the Brookings Institution, expressed great concern about the risks posed by the booming cryptocurrency market in a commentary published in The New York Times.

Despite Bitcoin recently soaring to an all-time high and receiving political support from figures such as former U.S. President Donald Trump and current Vice President Kamala Harris, Eswar Prasad warned that, in any case, today's cryptocurrencies pose greater risks to investors and financial institutions than ever before. He pointed out that the U.S. Securities and Exchange Commission (SEC) has relaxed regulations, making it easier for retail investors to enter the cryptocurrency market, but often they do not fully understand the risks involved.

Eswar Prasad further emphasized the dangers of centralization within the crypto ecosystem, noting that the collapse of FTX and the legal troubles of Binance are examples of how centralized power can undermine the fundamental principles of decentralized finance. He also stressed that "risks may spread from decentralized finance to traditional finance, and vice versa," thereby introducing vulnerabilities to the entire financial system.