BlackRock Inc CEO Larry Fink announced on Wednesday that the bankrupt FTX cryptocurrency He said the exchange was exhibiting “misbehaviour”, but that the technology behind crypto is valid for the future.
“We will have to wait to see how all this (FTX) turns out. I mean, we can make all the judgments right now, and there seems to be misconduct with major consequences.”
“Many Cryptocurrency Companies Will Not Be In The Future”
Making these comments at an event hosted by the New York Times DealBook, Fink added that he believes most crypto firms “will not be around” in the future.
bitcoin stock exchange FTX filed for Chapter 11 bankruptcy protection in the United States on November 11 after its sudden collapse, saying it may owe more than 1 million creditors.
BlackRock said it has invested $24 million in FTX through a billionaire fund it manages. Other global asset managers such as Temasek Holdings, venture capital fund Tiger Global, and Sequoia Capital have also invested in Sam Bankman-Fried’s FTX.
“Crypto Technology Will Be Very Important In The Future”
Despite all the problems surrounding FTX, Fink said he thinks the technology behind cryptocurrencies will be “very important.” “I believe the next generation for markets and the next generation for securities will be the tokenization of securities,” he added.
Earlier on Wednesday, US Treasury Secretary Janet Yellen said she was skeptical about cryptocurrencies and called for regulation.
Fink painted a bleak picture of the economy, noting a higher-than-normal inflation rate, high interest rates and low growth, and limited room for fiscal stimulus:
“Actually, we are entering a period that I can call more malaise. We will not be able to have an economy based on real growth that we are used to.”
*Not investment advice.
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