Wintermute CEO Evgeny Gaevoy has dismissed recent rumors of a major institutional collapse in the crypto market as unreliable. In a detailed post on the X platform, Gaevoy emphasized that the current market is more orderly, with risks being manageable. He noted that while individual institutions might face issues, these are unlikely to cause systemic effects in the medium to long term.
Gaevoy highlighted that past incidents, such as the collapse of 3AC and the FTX crisis, were quickly confirmed through industry channels, unlike the current rumors which lack credible sources. He pointed out that leverage in the current cycle is primarily from perpetual contracts, which are more structured compared to the unsecured lending platforms of the past. Exchanges have improved margin management, reducing the risk of losses. Gaevoy also stated that no institution would now risk investing user deposits in illiquid assets, as FTX did. He warned that publicly denying bankruptcy is risky for companies in jurisdictions like Europe, the US, the UK, or Singapore, due to potential legal consequences.
Wintermute CEO Dismisses Rumors of Institutional Collapse as Unreliable
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