BlackRock, the world’s largest asset management firm, suspects FTX’s creation of its centralised FTT native token led to the company’s collapse.
Larry Fink, BlackRock chairman and chief executive, commented at the New York Times 2022 Dealbook Summit, stating FTX’s crypto coin was at loggerheads with the “whole foundation of what crypto is.”
Despite the accusation, he added that cryptocurrencies and their underlying blockchain technologies would reshape the industry.
BlackRock Inc. CEO Larry Fink said most crypto companies will probably fold in the wake of FTX’s collapse. “I actually believe most of the companies are not going to be around,” Fink said Wednesday at the NYT Dealbook Summit.
— Gary Black (@garyblack00) November 30, 2022
What took you so long to come to that conclusion?
Fink’s criticisms of centralised crypto tokens such as BNB, FTT, XLN, and SOL continued after he said he predicted “most of these companies [controlling the tokens] are not going to be around.”
Currently, native tokens comprise roughly $57 billion out of $862 billion of the crypto market’s total market capitalisation, figures reveal.
Sorkin Speaks with Fink, SBF
Andrew Sorkin hosted the talks with Fink, with the Blackrock executive stating exchange-traded funds would contribute significantly to the development of investments and tokenisation following shortly after.
Social media has also slammed Sorkin for hosting talks with disgraced former chief executive Sam Bankman-Fried at the event. The FTX founder faces investigations from numerous intelligence agencies in the United States, the Bahamas, and others.
Coming up in a moment. The Interview. @SBF_FTX. Hit this to watch for free from anywhere. https://t.co/e8hgFoGDjs
— Andrew Ross Sorkin (@andrewrsorkin) November 30, 2022
He added: “I believe the next generation for markets, the next generation for securities, will be tokenization of securities.”
Tokenisation would benefit investments to change its industry’s ecosystem more than banks by using distributed ledgers to conduct “instantaneous settlement” complete with identifying securities data.
He added: “Think about instantaneous settlement [of] bonds and stocks, no middlemen, we’re going to bring down fees even more dramatically.”
Concluding, he explained in the interview that people could “make all the judgement calls” on FTX regarding “misbehavior of major consequence,” adding: “[If] you look at the Sequoia’s of the world they’ve had unbelievable returns over a long period of time, I am sure they did due diligence.”
FTX Disaster Continues
The news comes after many have stated Bankman-Fried misused funds via Alemeda Research, the company’s research wing, to process funds due to a lack of access to banking institutions.
The company also faced a huge bank run, triggering a liquidity crisis up to its collapse, causing millions of users to lose their entire crypto holdings.
