Predicting the dark future of the cryptocurrency market
BlackRock CEO Larry Fink warned that the collapse of the FTX exchange will bring down more crypto companies, according to Rashatoudi. BlackRock, one of the largest investment companies in the world and among the financial companies affected by the bankruptcy of a cryptocurrency exchange in the Bahamas. Fink manages $10 trillion in assets for clients ranging from large pension funds to individuals.
Fink announced that his company has invested approximately $24 million in FTX. According to the trader, there was major misconduct at FTX, but despite all the problems, he still sees potential in the crypto’s underlying technology.
The collapse of the FTX exchange has set off a chain reaction and created a crisis of confidence in the cryptocurrency market. This week, the main cryptocurrency lender BlackFi, which was financially involved with FTX, filed for bankruptcy. Now Genesis Brokerage is trying to avoid a similar fate. On Wednesday, the Kraken exchange announced that it would lay off 1,100 employees despite having no financial exposure to FTX. According to a Bloomberg report, more than 130 entities affiliated with FTX have been destroyed so far.
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