Wintermute CEO Optimistic Despite Plunging Revenues Only 1/5 Of 2021 Revenue

Key Points:

• Wintermute’s first 9 months of revenue only reached 225 million dollars, far from 1 billion dollars in 2021.
• The market crisis is believed to be the main cause.
• Optiver CEO Evgeny Gaevoy wants to launch a financial derivatives exchange to fill the gap of FTX.

In a recent Forbes report, the revenue of the famous market maker Wintermute for the first 9 months of the year was only $225 million, a figure much lower than the more than $1 billion in revenue achieved in 2021.

For 2021, the company, led by former Optiver trader Evgeny Gaevoy, reported a profit of $582 million. That includes $400 million in equity and $720 million in assets, Gaevoy told the magazine. The CEO received $12 million in dividends last year.

This year, there has been a huge difference. The sharp decline in the company’s results was attributed to the widespread credit crisis that forced some competitors to declare bankruptcy or pull out of trading and lending activities. Accompanied by a sharp drop in trading volume, the mainstay of companies like Wintermute to make profits.

The market has not yet recovered from the bomb of LUNA-UST, the recent crash of FTX has brought the market development to a halt and it could be the main cause of the prolongation of the crypto winter.

When Sam Bankman-Fried’s exchange FTX declared bankruptcy last month, Wintermute had $59 million locked up, and Gaevoy and Gurevich erased the money for good. They have consolidated most of the funds they hold on exchanges into three single places: Coinbase, Kraken, and Binance. And they are currently only trading $1 billion a day while the industry is in crisis mode, down from $3 to $5 billion earlier this year.

Besides that, some of their risk-taking activities in DeFi also come at a heavy price: Wintermute was hacked for $160 million after a human error in securing one of its digital wallets. Gaevoy says it won’t be profitable this year.

However, it seems that CEO Gaevoy still has an optimistic attitude

“We’re generally preparing for the next 2021 at the moment,(…).We don’t definitely 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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