Conversation

and

@theSamParr

talk about Billy of the week on

@myfirstmilpod

This week, it's Sam Bankman-Fried, or

@SBF_Alameda

He became a Billy in 3 years!! 😳worth ~10B. In case anyone missed the pod, here's quick 🧵

2. How did he do it? In one phrase: buy low, sell high over and over again in 2016-2017 he launches crypto trading firm after seeing trading volume and interest in #BTC is going up. He thinks there's arbitrage opportunity for buying and selling #BTC

3. He notices, #BTC in Asia there's a premium on the price. so if #BTC that was trading at $10k in US would be selling for $15k in Korea so spread widening sometimes would be as much as 50% and in Japan it was 10%. He decides to go after Japan bec of regulations of Korean won.

4. To do this arbitrage trades in small amount is not big deal but SBF wants to do millions so here's the workflow he has to make sure he gets it right buy #BTC in US with USD -> sell #BTC in JPN in yen -> convert back to USD and repeat this daily

5. Challenges he overcomes along the way in perfecting this workflow are a. Being able to buy millions in #BTC in US b. Find right platforms and exchanges to sell in JPN c. Convert JPN yen to USD before end of the day so he can repeat the entire cycle next day

6. DAILY RETURN of 10% compounding was the reward for getting this workflow right and he did. He was doing ~$25mill in daily arbitrage trades netting 10% of it in profits DAILY!!

says even at one point he was doing 10% of all #BTC daily transactions. Mind blowing!

7. Fast forward now, he's founded FTX, global crypto exchange company, turning over $2B daily and is always in work mode that he's known to fall asleep in the office on bean bags. He says it himself!!

Quote Tweet

SBF

@SBF_FTX

Feb 4, 2021

7) I'm (in)famous for playing League of Legends while on phone calls. I'll also try to avoid restarting my RAM if possible. One side advantage of the bean bags: if I sleep in the office, my mind stays in work mode, and I don't have to reload everything the next day.

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8. Learned one thing from this guy: have intense focus towards your goal and be willing to go to any length to achieve it. Badass!! If you liked this thread, give me a follow

I tweet about things I find interesting in business/tech world

SBF

@SBF_FTX

Replying to

6:58 PM · Apr 18, 2021Twitter Web App

uh is this live?

Replying to

and

Do you mean the podcast?

@myfirstmilpod

this wasn't live but they highlighted you as the Billy (billionaire) of the week. Inspiring story. Thanks a lot for the follow. Give

@myfirstmilpod

a listen.

@theSamParr

and

do a great job talking interesting businesses

Replying to

you'd be awesome guest for the pod. Would love to hear your thoughts on the ongoing #BTC crypto rallies, their role in society, any opportunities you see that could be worth solving to create businesses

@theSamParr