Podcast Summary
In this episode, the hosts interview Andrei Grachev, a notorious figure in the crypto Twitter community and a member of DWF. They discuss Andrei’s journey into the crypto space, his views on the current market, and his firm’s focus on profitability. The conversation also covers Andrei’s presence on Twitter, his investment strategies, and his thoughts on market manipulation. The hosts also share their own experiences and perspectives on the crypto market.
Key Takeaways
Andrei’s Journey into Crypto
- From Mining to Trading: Andrei’s journey into the crypto space began with a small mining farm in 2016. He later got involved in trading and community-driven associations, eventually joining DWF in 2018 and becoming a shareholder in 2020.
- Public Presence: Andrei’s transition from being less public to becoming more active, including sponsoring Token 2049 and giving a talk, was driven by the needs of their prop business, DFlaps.
Current Market Views
- Market Cycles: Andrei believes in market cycles but acknowledges that predicting their start is impossible. He suggests that the next year may be good for the market due to reduced uncertainty and the potential approval of ETFs and capital injections.
- Investment Strategy: Andrei follows a portfolio strategy with a focus on Bitcoin and Ethereum. He highlights the correlation between different coins and the overall market, noting that liquidity can be an issue for some coins.
Twitter Presence
- Visibility and Engagement: Andrei acknowledges the positive impact of being active on Twitter, as it allows him to establish his market positioning and vision. His presence on Twitter has attracted both positive and negative attention.
- Competitor Interactions: Andrei engages with other traders on Twitter in a fun and lighthearted manner. He addresses a comment from another market maker who expressed dislike towards his presence on a panel, stating that he is happy to be disliked by competitors as it indicates they are doing a good job.
Investment Focus
- Infrastructure Projects: Andrei focuses on investing in infrastructure projects, particularly perpetual dexes, as he believes it is the future of the market. He highlights that while DDX has a market share, it is not truly decentralized and has centralized elements like a centralized matching engine and settlement.
- Trading Strategy: Andrei’s trading strategy focuses on short-term trades with an average position term of around 1 second, using statistical models to predict market movements. He emphasizes the importance of risk management and trading small sizes with high frequency to mitigate the impact of flash crashes or market manipulation.
Sentiment Analysis
- Bullish: Andrei expresses a bullish sentiment towards the crypto market, suggesting that the next year may be good for the market due to reduced uncertainty and the potential approval of ETFs and capital injections. He also shows optimism towards infrastructure projects, particularly perpetual dexes, as he believes it is the future of the market.
- Bearish: Andrei acknowledges that the bear market has affected their market-making business, DFlaps, which is related to clients and projects. He also mentions the recent crash in BTC as an example of the current market conditions.
- Neutral: Andrei maintains a neutral stance on certain topics, such as market manipulation. He believes that while there may be some shady practices, it is unlikely in large markets with high trading volumes. He also emphasizes that the market is the master of the game and that there is no goal or intention behind market movements.
