BlackRock CEO Larry Fink said on Wednesday that the asset management giant invested $24 million in FTX before the crypto exchange crashed. Also, Larry Fink noted that crypto technology is still viable despite FTX. However, Fink stated that FTT played an important role in the collapse of FTX. Therefore, he predicted extinction for altcoins based on centralized exchanges.
“Centralized exchange-based altcoins will disappear!”
Larry Fink, Chief Executive Officer of LackRock Inc, made the remarks at an event hosted by the New York Times DealBook on Wednesday. Fink said there was “misbehavior” at the now-bankrupt FTX crypto exchange. However, he added that despite this, the technology behind crypto is still relevant for the future. In this context, Fink made the following statement:
We’ll have to wait to see how all this with FTX turns out. I mean, we can make all the decisions right now. However, there have apparently been misconduct with significant consequences.
Meanwhile, Larry Fink also noted that he believes most crypto companies will not be around in the future. Fink clarified the issue by stating that FTT had an important role in the collapse of FTX. According to him, altcoins based on centralized exchanges pose a problem. So he predicts an extinction for them. There are many tokens based on cryptocurrency exchanges. For example, Binance Coin (BNB) is the native token of the largest crypto exchange Binance. In addition, Crypto.com, Kucoin, AscendEx, WazirX exchanges also have tokens.
“The technology behind crypto will be crucial”
cryptocoin.comAs you follow, FTX filed for Chapter 11 bankruptcy protection on November 11 after its sudden collapse, saying it may be in debt to more than 1 million creditors in the United States. BlackRock 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. Despite all the problems with FTX, Fink has not completely lost hope for Bitcoin and altcoins. In line with that, he said the technology behind the crypto would be ‘very important’. He continues his explanations as follows:
I believe the next generation for markets and the next generation for securities will be the tokenization of securities.
Earlier on Wednesday, US Treasury Secretary Janet Yellen also said she remains skeptical about cryptocurrencies. Also, he called for editing again. Fink gave a bleak picture of the economy, citing a higher-than-normal inflation rate, higher interest rates, and lower growth and limited room for fiscal stimulus. In this regard, he said:
In fact, we will enter a period that I would call more resentment. We will not have the real growth-based economy that we are used to.
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