“Next Generation for Markets” Is Tokenization: Predicts Larry Fink
At the DealBook Summit hosted by the New York Times, the CEO of investment giant BlackRock, Larry Fink, talked about how “the next generation for markets, the next generation for securities, will be tokenization of securities,” as this is how its transfer and ownership are authenticated. Fink believes that tokenization will provide "instantaneous settlement" and "reduced fees."However, he also added that the gradual expansion of this type of technology will not disrupt BlackRock's business model. Although it is clear that tokenization implies a significantly different approach to asset trading, regardless of their specification and pricing. Clearly, BlackRock is not the only one betting on tokenization as the future of financial services. For example, Flowcarbon, a carbon tokenization startup led by former WeWork founder Adam Neumann, recently raised $70 million in investment from high-profile investors such as a16z, General Catalyst and Samsung Venture Investment. And JPMorgan in November approached Polygon with a request to organize the trading of tokenized cash deposits in a test mode in Singapore through Onyx Digital Assets, a private blockchain created by the bank. Therefore, it is important to understand that asset tokenization is not just the future, as Fink argues, but the present.
“I Did Not Knowingly Commingle Funds”: Excuses from Sam Bankman-Freed Arrived
At the same DealBook Summit hosted by The New York Times, the founder of the dramatically bankrupt crypto exchange FTX, Sam Bankman-Fried (SBF), reiterated his opinion on the reasons for the collapse of the trading floor and denied allegations of misappropriation of assets by his client, stating that he never tried to cheat. As a reminder, SBF's allegations of fraud and misappropriation of funds from crypto investors arose after FTX stopped withdrawing funds for clients. And liquidity problems arose after its subsidiary trading company Alameda Research suffered huge losses due to the collapse of the cryptocurrency markets. Back in October, questions began to arise in the crypto community about whether Alameda Research was using user funds as collateral and whether it was making risky bets on behalf of clients. The answers to these questions have not been found to this day, but already in November, FTX and Alameda Research filed for bankruptcy. At the DealBook Summit, SBF revealed that he deliberately did not mix FTX client funds with the trading balance at Alameda Research, of which he is the majority owner. At the same time, Sam said that he does not even know what percentage of FTX's assets Alameda Research owns, since he did not manage the company so as not to provoke a conflict of interest. "I've had a bad month. This has not been any fun for me. But that's not what matters here. What matters here is the millions of customers, what matters here is the stakeholders in FTX. And what matters is trying to help them out." — SBF said, adding that due to the collapse of the crypto exchange, he lost all his personal funds.
Durov Intends to Build a Decentralized Crypto Ecosystem in Telegram
Against the background of the collapse of the FTX crypto exchange, the founder of Telegram, Pavel Durov, announced that he intends to launch his own decentralized crypto ecosystem in the messenger, which will have DEX and non-custodial wallets. According to Durov, “the blockchain industry was built on the promise of decentralization,”and given that the collapse of FTX was most likely due to excessive centralization, he noted that “blockchain-based projects should go back to their roots.” The founder of Telegram also said that Fragment, a fully decentralized auction platform on The Open Network (TON), which “took only 5 weeks and 5 people,” earned $50 million selling usernames in less than a month. Based on the success of Fragment, Durov said that Telegram has additional tools to help move gradually towards decentralization. In his opinion, technologies like TON can “give the power back to the people.” The extension will allow Telegram to create non-custodial wallets and even decentralized exchanges so that millions of people can trade and store cryptocurrencies securely. But it is precisely with regard to security that questions, nevertheless, remain...