World’s Largest Asset Manager BlackRock Chief Executive Says More Crypto Firms Will Fall Following FTX Collapse
Despite the recent collapse of FTX, the technology behind cryptocurrency remains relevant for the future, according to Larry Fink, the CEO of major investment fund BlackRock.
"We're going to have to wait to see how this all plays out [with FTX]", Fink was quoted by the news agency Reuters. "I mean, right now, we can make all the judgment calls and it looks like there were misbehaviors of major consequences.”
The executive made his remarks during an event – New York Times DealBook. At the same time, Fink said that he believes the majority of crypto businesses "are not going to be around" in the future.
In spite of all the issues triggered by FTX’s bankruptcy, Fink said that he thinks blockchain technology "will be very important."
"I believe the next generation for markets and next generation for securities will be tokenization of securities,” the businessman said.
Regarding the economic outlook for the U.S. economy, Fink painted a bleak picture, referring to the rising inflation, high interest rates, as well as limited capacity for fiscal stimulus.
"We're actually going to enter a period of more what I would call malaise," the executive said. "We're just not going to have an economy that is based on real growth that we were accustomed to.”
It is noteworthy that a similarly gloomy forecast for the U.S. economy was recently offered by Tesla’s and Twitter’s CEO Elon Musk.
The billionaire entrepreneur called the current economic trend in America "concerning" in response to a tweet by user who said he is "expecting a real economic recession in 2023" and advised others to be prepared "for any macro storm ahead of us."
Musk believes that the United States could be heading toward a major recession in the near future and is calling on the U.S. Federal Reserve (FED), the country’s central bank, to immediately cut interest rates.
"Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession,” he tweeted.
"Ironically the Fed continues to project positive GDP growth for next year despite all the obvious signs. But they did the same thing in 2008. As always, they will panic cut rates once the recession impact is here & then blame unforeseen factors,” Sven Henrich, the founder and lead market strategist of NorthmanTrader, agreed with Musk.