Crypto Kings: Volatility is a Feature not a Bug

Here’s a second takeaway from Howard’s conversation on crypto with Sam. It gives insight into how a trader looks at the world. Most of what Sam describes scared us away from crypto back then, and probably still scares us away now too.

After having been at Jane Street Capital for nearly three and a half years, Sam was itching to start his own thing. He sat down and did a bunch of back of the envelope calculations. He concluded the biggest upside came from trying a bunch of things. This was late 2017, and crypto was going crazy. Sam had a strong instinct crypto probably had great potential.

It checked all the boxes. Volatility and retail interest was huge. The industry was growing fast and split between many different venues across the world. No financial institutions were involved yet, so there wouldn’t be much liquidity initially; and the infrastructure was going to be shitty.

Crypto had all the heuristics a trader would look for. A space where the liquidity demanded would be outstripped by the supply. The perfect opportunity.

To see what Sam’s built since then with Alameda and FTX is mind blowing. If only I’d remembered one of Howard’s more famous sayings, “Volatility is a feature not a bug,” perhaps I’d have gone down the crypto rabbit hole much earlier.

Catch the entire interview on your favorite podcast app: Sam Bankman-Fried of FTX on Futures, the Global Scale of Crypto and More (EP.159)




Twitter: @peteweishaupt Website:

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

SHIB It’s The End… Blah Blah Blah Not Really

What benefits does CoinJanitor bring to the crypto industry?

What Makes Monero Unique Among Coins

Multi Chain Bytes: 21 Jan — 4 Feb

Bitcoin Exchange Rate Forecast for 2019

The London fork is here — what does it mean?

Bram Cohen: Chia will be a far more secure and liquid marketplace for tokens than has ever existed…

Weekly Crypto Market Musings — May 11–24, 2019

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Pete Weishaupt

Pete Weishaupt

Twitter: @peteweishaupt Website:

More from Medium

Web3 Goes Worldwide: International Protocols and Platforms Hundreds of Millions from Top VCs

A Guide to Investing in NFTs

The Future of NFTs: A Race Between Traditional Businesses and Crypto-based Financial Services

The Future of NFTs: A Race Between Traditional Businesses and Crypto-based Financial Services

Start-up Society #84: OjaExpress