Tuesday, February 7, 2023
HomeAltcoinsFTX Token Collapses, Yet Technology Is Still Innovative

FTX Token Collapses, Yet Technology Is Still Innovative

According to the chief executive officer of the biggest asset management company in the world, BlackRock, the failure of FTX may be due to the fact that it established its own FTX Token FTT, which was centralised and, as a result, was incompatible with the “whole premise of what crypto is.”

The remarks were made by Larry Fink, who serves as chairman and CEO of the $8 billion investment company. They were made during the New York Times’ 2022 Dealbook Summit, which was held on November 30. Fink also added that, despite his belief that FTX’s own-created token caused its downfall, he believes that cryptocurrency and the blockchain technology that underpins it will be revolutionary.

According to CoinMarketCap, centralised exchange tokens like BNB and sister exchange Crypto.com’s Cronos CRO account for more than $57 billion of the entire $862 billion market value in cryptocurrency. Fink said that he maintained his previous scepticism about these tokens and that he felt “the majority of these firms [that own the tokens] are not going to be around.”

Later on in the interview with writer Andrew Sorkin from the New York Times, Fink said that while he thinks exchange-traded funds (ETFs) were the driving force behind the last evolution of investing, he believes that tokenization would be the driving force behind the next.

Then, he went on to elaborate on some of the potential advantages of tokenization, saying that it would change the ecosystem of investing because investors wouldn’t have to rely on banks for “instantaneous settlement,” which would be possible on distributed ledgers that show every owner and seller of securities. He also suggested that tokenization would change the value of cryptocurrencies.

He elaborated, saying, “Think about rapid settlement of bonds and equities, no intermediaries; we’re going to drive down expenses even more significantly.”

Fink admitted that BlackRock had an investment of $24 million in FTX, but he refused to speculate on allegations that they and other venture capital firms, such as Sequoia Capital, had failed to do the proper due diligence on FTX. The allegations state that BlackRock and other firms, including Sequoia Capital, invested in FTX without conducting the necessary research. In the meantime, on September 27, it announced the creation of an ETF that would provide investors with exposure to 35 firms associated with blockchain technology.

Related Posts:

To get daily updates & trending news on crypto follow us on:

Facebook:- https://www.facebook.com/CryptoShrypto/

Instagram:-  https://www.instagram.com/cryptoshrypto_/?hl=en

 Twitter:-  https://twitter.com/cryptoshrypto1

Youtube:-  https://www.youtube.com/channel/UCdAOUEQ3L_eYjU_NMDA1zxg 

Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular