BlackRock's Fink claims FTX's own FTT token caused collapse of FTX

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BlackRock's Fink claims FTX's own FTT token caused collapse of FTX

Asset management company BlackRock Inc.'s BLK CEO Larry Fink claimed that the creation of its own centralized FTT USD token was the cause of the collapse of FTX. The chairman and CEO of the $8 billion investment firm made comments on November 30 at the 2022 DealBook Summit hosted by the New York Times.

Fink said that despite his belief that FTX's self-developed token was to blame for the company's demise, he still believed that cryptocurrencies and the technology that powers them will be revolutionary.

The BNB and Cronos of theCryptocurrency.com make up more than $57 billion of the $862 billion market cap for cryptocurrencies, according to CoinMarketCap.

Most Companies with Centralized Tokens Will Collapse.

Most of these companies, managing the token, will cease to exist, as he continued his skepticism about them.

Later in the conversation with the New York Times, Fink stated that while he believes exchange-traded funds ETFs were responsible for the last evolution of investing, he believes that tokenization will be the driving force behind the next one.

He believes that the next generation of markets, the next generation for securities, will be the tokenization of securities.

He said that the investment ecosystem would change, as instantaneous settlements on distributed ledgers that display every owner and seller of shares would be possible instead of relying on banks.

He said that when you think of the instantaneous settlement of bonds and stocks, no middlemen, we're going to bring down fees even more dramatically.

Fink acknowledged that BlackRock had invested $24 million in FTX, but he declined to comment on claims that Sequoia Capital and other venture capital companies did not conduct adequate due diligence on FTX.

If you look at the Sequoias of the world, they have had unbelievable returns over a long period of time, we can make all the judgement calls that it looked like there was some misbehavior of major consequence. Fink said they were sure they did due diligence.

BlackRock has participated actively in the criptocurrency market since 2020.

On November 3, it made an announcement that it would be handling the reserve money of the USD Coin UDSC USD issuer Circle.

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