Wintermute Surpasses Troubles Impressively During a Bear Market

Key Points:

• Wintermute is emerging as a disruptive company in the crypto market.
• The company booked $225 million in revenue during the first nine months of 2022, according to Forbes.
• Last year, the company brought in $1 billion.

Wintermute has developed into one of the top cryptocurrency trading companies in the world by successfully navigating the industry’s frontier markets and profiting greatly from Terra’s stable coin’s demise, according to Forbes.

The company CEO Evgeny Gaevoy was thinking about what to do in the event that TerraUSD (UST), a stable cryptocurrency tethered to the value of one US dollar, collapsed.

Around $15 billion worth of circulating UST coins were supported by reputable investors, including Lightspeed Venture Partners, who also funded the parent corporation. However, a tiny group of people began tweeting about its impending extinction as early as 2021, claiming that algorithm-based stable coins that were not backed by officially recognized currencies were destined to fail.

Gaevoy developed a strategy that month with Marina Gurevich, his wife and the COO of Wintermute. The integration of Wintermute’s trading platforms with Terra’s blockchain technology took a month.

Wintermute put up its own servers and operated Terra software nodes to acquire a front-row view of UST’s transactions and pricing, just how high-frequency trading firms aim to get the fastest access to stock market data. 4,000 lines of code were written for brand-new trading algorithms. Then, on May 7, when the cost of UST dropped to $0.98, Gaevoy instructed his staff to schedule night shifts for the upcoming week.

Two days later, UST started its breathtaking freefall, and Wintermute launched its arbitrage plan.

The Terra play was a signature move for Gaevoy, who also had the guts to gamble in the dangerous area of decentralized finance, which many crypto businesses ignore.

In contrast to more specialized trading businesses, Wintermute’s approach is to explore all facets of digital assets.

“We are not the best ones in everything we do,” Gaevoy says.

However, its all-inclusive strategy and earnings from over a billion deals have piled up to significant amounts. Wintermute achieved $1.05 billion in revenue and $582 million in profits in 2021 despite having just 53 workers. Gaevoy holds a third of the business, making him at least hundreds of millions of dollars richer.

Wintermute, a company that trades digital assets, made $225 million in sales in the first nine months of 2022 as opposed to $1.05 billion for the entire year of 2021.

Gaevoy told the magazine that Wintermute had $720 million in assets and $400 million in equity.

The CEO collected $12 million in dividends from the company’s owners last year.

In contrast to more specialized trading businesses, Wintermute’s approach is to explore all facets of digital assets.

“We’re basically preparing for the next 2021 at the moment. We don’t necessarily care about making the most now because it’ll be just a tiny fraction of the bull markets that can come.”

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Harold

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