Sam Bankman-Fried (SBF) is the Chief Executive Officer of FTX, a crypto derivatives exchange, and Alameda Research, one of the biggest quantitative cryptocurrency trading firms with experts from Wall Street and Silicon Valley.
In this interview, Sam talks about his views on the current market trend, his forecast for Bitcoin, Ethereum, and other altcoins, as well as some more points about trading safely.
Sam’s View on the Current Market Trend
Sam thinks that the price action we’re seeing from the market today looks pretty much like its movement back in 2017. And while this may be the case, it still has some differences with Bitcoin’s 2017 bull run. Today, the market is not seeing a lot of newcomers to the space. Most of the price action we’ve been seeing is backed by the bullish view of people who are already in the market, including institutional investors that are now more interested in digital assets.
Bull Prediction Bitcoin, Ethereum & Altcoins in 2020
On Bitcoin, Sam said that while we’ve seen its price move up to the $18,000 level, it does not have the same momentum that it once had when it was still going up to where it is now. But even if the Bitcoin inflow daily is not that significant, it does not necessarily mean that its value will be plateaued for long.
Right now, Sam said that the increase in trading for Bitcoin futures is higher than usual. This is one of the metrics that reflect the bullish sentiment of the market. In the meantime, SBF said that bullish attention has shifted towards altcoins.
Forecast on Altcoins
Sam noted that there is still a lot of ‘hot air’ in the altcoin space. While inflow has increased for alts, it is not that significant since it could still possibly be influenced by speculation. People might just be waiting for massive adoptions, new use cases, or retail sentiment, before entering the market.
Leverage Trading Strategy
There are instances where people seem to actively attempt to trigger liquidations. Sam said that in many cases, it’s also difficult to figure out whether the movement of the market is natural. That is why it is tough to find out which drops in prices are artificial just to force liquidations.
Alameda Fund & FTX Positioning
Trading against customers is not a problem on Alameda Fund and FTX because they do not have access to any special information that isn’t already available to the general public. For now, their goal is just to improve the liquidity of the exchange to make it easier to list new products and better serve their users.
Perspective on Toxic Trading
Sam believes that whether a trade is toxic or profitable depends on a particular context. Some toxic traders may be those that purchase or sell assets that they expect to experience significant price actions. However, what’s important to understand is that these kinds of traders might just also be looking at different metrics before executing their trades.
Securities Trading on FTX: Explained
FTX offers different trading products, including leveraged futures and spot trading. Trading securities on FTX features access to a matching and risk engine. It also has the liquidity to support trades. For anyone who is interested, the platform is accessible 24/7.
Tips on How Should People Protect Themselves from Trading
One tip Sam gave is the reminder that you should never make random trades. But if ever you’ve made one already, it’s important to identify the maximum losses you’re willing to take, especially if you have leveraged positions.
Sam’s Point-of-View on DeFi Trend
There’s a lot of DeFi projects that failed to launch and operate successfully. The product landscape for DeFi seems stuck for many reasons. This includes the difficulty in listing new tokens as well as the constraints on some users in transferring from blockchain to blockchain.
Perspective on Ethereum 2.0
Sam believes that the launch of the Ethereum 2.0 is a welcome development, but other functions like transfers and trading are going to take a long time before they are rolled out. While it can help DeFi, it might take years before it becomes fully live.
Sam invited people to check out FTX or Serum, the respective centralized and decentralized exchanges that they are operating. He adds that Serum has by far the best on-chain order book system in the space yet the platform is still open to other DeFi developers who want to contribute to its growth.