Wintermute CEO: Highly Skeptical of Recent Market Rumors About "Institutional Blowouts"

Odaily News Wintermute CEO Evgeny Gaevoy posted on the X platform, expressing skepticism towards the recent market rumors about "institutional blowouts," or at least doubting their medium to long-term impact. Perhaps some institutions did blow out, but it hasn't generated any noteworthy spillover effects. He pointed out that during the 3AC blowout after the Terra incident, the market quickly became aware as the news spread through private messages. While the FTX situation took longer, it became very obvious once news of its negotiations with Binance was disclosed. Currently, nothing similar is being observed; all rumors originate from anonymous accounts without any credible confirmation.

Evgeny Gaevoy believes that the leverage in this cycle primarily comes from perpetual contracts. Compared to the leverage facilitated by opaque, uncollateralized lending platforms like Genesis and Celsius in the last cycle, the current structure is more orderly. Exchanges have also learned lessons in margin management and employ mechanisms like ADL to avoid losses. Furthermore, he thinks no institution today would adopt the FTX model of investing user deposits into illiquid assets. Finally, he stated that if a company were truly bankrupt, publicly denying it would be highly risky, especially if the company is located in Europe, the US, the UK, or Singapore, as it could face legal consequences.