BlackRock is an investment company headed by Larry Fink. The latter spoke during the New York Times Dealbook 2022 summit which took place on November 30. He was interviewed by journalist Andrew Sorkin. During his talk, Fink remarked on the recent bankruptcy of crypto exchange FTX.
Creating the FTT token was a bad idea, according to Larry Fink
BlackRock CEO has explained that the FTX exchange might not have gone bankrupt, had it refrained from creating its own crypto. He argues that the exchange’s FTT token was centralized, which contradicts “the whole foundation of what crypto is“. Even so, he clarified that blockchain technology and crypto will be revolutionary.
BlackRock’s CEO showed up skeptical of tokens of most centralized exchanges. According to him, the majority of CEX will eventually disappear. Note that the market capitalization of the crypto market is $862 billion per CoinMarketCap. CEX tokens happen to account for over $57 billion of that total.
In addition, Larry Fink indicated that ETFs caused the previous evolution of the investment. He expects there to be another evolution, which this time will be stimulated by tokenization. Indeed, he said:I believe the next generation of markets, the next generation of securities, will be the tokenization of securities“.
BlackRock had invested millions of dollars in FTX
Lately, there have been rumors that BlackRock and other venture capitalists haven’t been vigilant enough regarding FTX. Users also accused Sequoia Capital of being negligent. The CEO of BlackRock reacted to the allegations about his company, starting by admitting that it invested $24 million in FTX.
Next, Larry pointed out the failings that have sunk the crypto business. : “At this time, we can say that it appears that there was some misconduct within FTX. A conduct that had major consequences”
BlackRock has been actively investing in the crypto industry since 2020. In September, the company announced the launch of an ETF that will promote exposure to 35 companies related to blockchain technology.
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