BlackRock CEO, Larry FinkHe says he still sees hope in the underlying technology Digital currenciesdespite everything that happened with FTP extension. The billionaire spoke out about the scandal FTP extension At yesterday’s New York Times DealBook Summit:
“I actually think most cryptocurrency companies will not exist in the future.”
Black stonethe world’s largest asset manager overseeing about $8 trillion, has previously invested $24 million in FTX. Fink believes Sam Bankman-Fried may have misled investors.
We’ll have to wait and see how the situation develops. I mean, now we can make all the necessary assessments. It appears that there have been incorrect behaviors that have important consequences.”
FTX’s valuation rose to $32 billion at the start of the year, after raising money in seven venture capital rounds since 2018, including a Series B-1 round valued at $420.69 million late october
That all quickly collapsed earlier this month after a $6 billion bankruptcy over concerns about low liquidity and mismanagement. FTX is now in bankruptcy proceedings, and the latest figures show it owes $3.1 billion to the 50 largest creditors, with a discount of up to 1 million users.
Ex CEO Sam Bankman Fried He told DealBook Summit he did not commit any fraud intentionally and was “honestly surprised” How big Alameda was on the original exchange token, FTT. Fink is convinced that FTX issuing its own digital currency, especially without revealing its balance sheets, led to its downfall.
Major venture capital firms Sequoia and Temasek were among the most exposed on the stock exchange. Sequoia raved about Bankman Fried, saying in a now-deleted blog post that its wit was “as impressive as it is frightening.”
Since then, both Temasek and Sequoia have liquidated their holdings in FTXwhile the Ontario Teachers’ Pension Plan plans to do the same with its $95 million investment.
Despite the problems surrounding the failed exchange, Fink, who was earlier skeptical of cryptocurrencies, said so will the technology that supports them. “very important”referring to the “blockchain, not Bitcoin” mantra heard in the past on Wall Street.
In fact, significant new developments have occurred recently in this field, With major institutions that have ventured into trading tokenized securities and bonds on a reasonably public and decentralized blockchain.
Decentralized cross-chain exchanges are becoming increasingly popularBut traditional blockchain-powered markets are still a long way off.