EVGENY GAEVOY has started a traditional financial career specializing in market production and props trading. However, by 2016, gaevoy has noticed that GAEVOY has the opportunity to create a completely new one after seeing the inefficient of legacy financial systems and the possibility of intermediate.
With the experience of building a European ETF business of Optiver, one of the largest foreign exchange companies, one of the largest in the EU, he decided to launch an algorithm trading company designed for the digital asset era. Since 2017, WinterMute has since grown into one of the largest algorithm trading and liquid provider of the cipher, processing more than $ 5 billion and more than 50 trading venues in the central and distributed exchanges. We provide deep liquidity.
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Here, Geboy, a lecture in the consensus Hong Kong, has a method of predicting how the Asian cryptographic market is different from the western market, and multiple fluids. Discuss how WinterMute is responding to fragmentation. Blockchain.
This interview is condensed and clearly edited.
What made you start WinterMute?
I started searching for blockchain around 2016. This is relatively slower than some early recruiters. At that time, I was in a traditional finance, but what I was really interested in was reduced the efficiency of Casodian and Prime Broker. The blockchain seemed to be a great way to confuse it.
But at that time, it felt all theoretically. It wasn’t until 2017 that I really entered the encryption. I quit my job, started looking around, and purchased a small amount of bitcoin based on coins. After that, the price doubled in one or two weeks. And I was rarely paying attention because the volatility was so crazy compared to what I was used to trade.
Tradfi Market Making, when the market moves 3-4 %, it may be 10 days a year, if things are really exciting, but that is a big deal. However, such movements always occur in encryption. So, I know Prop Trading, I know market production, and I like building things from zero. That is why Winter Mute was born.
You are actively engaged in both Western and Asian markets. What is the biggest difference you observed between the two?
Regarding regulations, all of the companies are still promoted in the United States, even in Asia, and most companies are looking at what the United States is doing, rather than setting their own independent courses.
Regarding OTC and institutional transactions, China is the biggest missing work. Chinese institutions and companies have not yet been allowed to touch the cipher. Also, until the Chinese Communist Party changes its attitude, there is no appropriate institutional flow.
What are the important opportunities coming out of Asia now?
The most interesting development now is how a specific country is open to cipher in a meaningful way. Japan is becoming more and more attractive due to the improvement of encryption tax policy. By reducing the tax burden on Crypto Holdings, this country makes it easier for both companies and individuals to participate in the market without excessive economic penalties. This is an important movement that can promote liquidity and institutional involvement.
South Korea is another exciting case mainly for a large retail market. However, the main restriction is that foreign market manufacturers are still restricted to integration with local exchanges. If regulatory authorities can participate in external fluid providers, they may release a huge amount of liquidity. Currently, South Korea’s exchange is still very isolated, so there is still a phenomenon like Kimchi Premium. This is a direct result of a structural barrier that hinders the global fluid flowing into the market.
Hong Kong, on the other hand, plays a unique role as a Chinese pilot program. While China is still officially banned, Hong Kong has established a regulated market and institutional framework that will help China in the future as a testing for how China will be involved in the future. As a result, Hong Kong is an important area to see, especially from an institutional recruitment.
The most important important thing is how these markets evolve. This is because they offer different entry points in the Asian crypto recruitment cycle. Japan attracts institutions with tax incentives. An experiment that may have a larger meaning for China.
The adoption of Asian ciphers and fluidity are driven, what were the unknown or unexpected catalysts?
The biggest surprise for me is that many of the stories seen on Crypto Twitter and VCS do not reflect what is actually happening on the ground.
Great examples are Tron and tethers. In Asia and Latin America, Tron’s USDT is the most widely used encryption assets for payments, especially for those who have no banks and those who are trying to escape currency. But in the west, no one talks about it. Also, although it is ignored by West Echo Chamber, there are many projects and Defi protocols that are really good in Asia. That’s why it’s important not to rely on Western stories, but to pulsate what is happening in Asia.
Do you think AI will execute the entire market production work autonomously?
AI has already been widely used for transactions and has been quite long. Machine learning is not a new one. Companies have used it in props for many years. The difference is currently different is how much the AI ​​model is, and how much raw computing power is being thrown into this problem.
For example, consider XTX (another algorithm trading company) -The amount of GPUs exclusively for machine learning is insane. They are building a huge data center in Finland just to execute the AI ​​model. Although it is not a new one in transactions, the deployed scale is increasing rapidly.
Is AI replaced by human traders completely? I don’t think so -it’s not at least 5 to 10 years in the future. The biggest restriction factor is the amount that can be actually automated.
Currently, you have a different style of market making companies -partially depends on AI, but others still have many people input. Winter Mute falls somewhere in the middle. If it makes sense, I use AI, but there are still many human decisions, especially for dynamics in markets in markets that AI still do not yet understand.
The real issue is to adapt to AI to a market like Crypto. This is still unpredictable and lacks a structured dataset that can be accessed by conventional financial companies. AI has excellent pattern recognition, but still struggles with Black One event and a very unstable market. Humans still play an important role until AI reaches a level that can fully adapt to unexpected market shifts.
How do you approach WinterMute to become more and more fragmented into fluid issues in various blockchain?
Wintermute is to promote and promote as much as possible on blockchain, intensive exchange, and distributed exchanges. I don’t think fragmentation is a bad thing -it actually creates more opportunities for us.
Currently, we are connected to all major intensive replacements, huge OTC counter parties, and dozens of Defi ecosystem. This diversity is our competitive advantage. Instead of waiting for the market to converge, we accept fragmentation and have fluidity everywhere.
Is there a possibility that things will be more intensive over time? Probably, but I don’t think so, at least it’s not a TRADFI mechanism. In conventional finance, we have a derivative CME, some dominant stock exchanges, and a relatively small key player.
Cryptography is different. It is essentially decentralized, and I think it will stay like that. There is always a new blockchain, a new trading venue, and a new fluid pool. Instead of integrating a small number of major players, you will see continuous extensions of the ecosystem. Companies like WinterMute must be enough to work with everyone.
Consensus What is most excited about discussing on stage in Hong Kong?
One of the things I want to talk is the role of market makers in market structure and cipher. There are so many misunderstandings about what we are doing. For example, when you go to Crypto Twitter, people who blame the market manufacturer to cause a price crash will be displayed. There is a major misunderstanding about what the market maker is actually doing, how it runs, and how to provide fluidity. I would like to dispel some of those myths, explain how the market is actually working, and even try some of the wrong stories there.
