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2) NOT INVESTMENT ADVICE

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3) Most current markets do not have anything approaching equitable access. The largest firms together spend billions of dollars on direct market access and fast marketdata. Meanwhile retail investors pay layers of fees, have huge latency, and literally can't see marketdata.

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4) Risk engines run on a multi day delay. When markets keep moving, the risk isn't managed or mitigated; it's ignored until it becomes unmanageable.

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12:21 PM · Apr 26, 2022Twitter Web App

Apr 15

4) If you ignore margin problems for a while they don't go away; they get out of control. Real time margin is risk reducing.

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Replying to

5) Many VC firms are providing crucial capital to scaling businesses. Others are, uh...

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Joe Weisenthal

@TheStalwart

While everyone was talking about his description of yield farming, I thought SBF's description on the podcast of how VCs operate was absolutely devastating. I posted the relevant part in today's @Markets newsletter: bloomberg.com/account/newsle

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6) And at major tech companies, the idea of innovating further or continuing to build goes from the goal, to the hope, to a fond memory of when things were functional.

7) But it's easy to complain about problems. What are some solutions?

Cryptocurrency Derivatives Exchange

8) Well, how about equitable market access? Traditionally the economically disenfranchised go through 10 layers of blockers. In crypto, they can go to ftx.com, create an account, and send orders straight to the matching engine, with full marketdata--for free.

ftx.com

FTX

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9) In crypto, risk engines run in real time--managing risk, mitigating losses, and ensuring that collateral is transparent and real.

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Apr 15

1) This is what a real-time risk engine looks like: Total lifetime draw < $10m, max daily draw $4.7m. If we asked for 15% margin: Total lifetime _gain_ of $45m, max daily draw $1.6m.

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10) The digital asset ecosystem doesn't gate early access on wealth, instead quickly creating real market prices for assets and broadening distribution and price discovery.

11) And open network blockchains allow people, groups, and companies to build, combine, and innovate directly onto the network--composing seamlessly with other applications.

12) The innovation that we've seen in the crypto ecosystem isn't riskless: open innovation combined with easy market access can lead to more scams, and clearinghouses can fail. twitter.com/TheStalwart/st Which is why we need federal oversight.

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Joe Weisenthal

@TheStalwart

Apr 25

I think SBF explaining yield farming and then Matt’s reaction to it will go down as one of the all time, most iconic moments on Odd Lots. bloomberg.com/news/articles/

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13) We need to have transparency, anti-fraud controls, and checks that customers understand the products they're investing in. ftxpolicy.com/disclosure-and

14) And we need federal oversight and licensure of crypto exchanges--especially clearinghouses--to make sure that the risk-reducing innovations in risk models aren't canceled out by other negligence. ftxpolicy.com/ftx-clearingho

15) And while most current sanctions compliance in the digital asset ecosystem is robust, the same mandates that compliant venues face have to be extended globally. ftxpolicy.com/sanctions-comp

16) Things aren't perfect. Innovation rarely is. So we take one step forward after another, and day by day we get better.

17) Because at the end of the day, I strongly believe that the digital asset ecosystem presents a better way forward for our markets. A more innovative, more equitable, and more transparent alternative, where open systems replace monopolies.

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18) It's incredibly important that we do everything we can to make our ecosystem its strongest version. Not because traditional markets are perfect--because they're not. And so if we build crypto right, we can move the whole world forward.

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