Is Shorting More Difficult?

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Shorting is just more difficult. If you buy an ased it can go up a hundred x. If you short something, the best you can do is double your money unlevered at least. So getting the timing right was very important. We were basically monitoring very closely all the exit liquidity that was immediately available on curve and in the order books. And then finally, when it was really dry and it's we started to see some serious a peg deviations,. Then we thought about, ok, so now that we're out of this thing, maybe it is a good time to start putting on, you know, long plays.

Last week, $60B in value was wiped from crypto in a few days.

Not many saw the collapse of Luna coming - even fewer had the guts to bet on it.

Since the start of the year, Galois Capital has been openly calling out for the impending fall of Luna and endured the barrage of hate comments until 8th May 2022 - the day that Luna started death spiraling. Kevin Zhou from Galois Capital shares with us:

Why he was convinced LUNA would implode
How he timed his short trade
The 4 high conviction trades Galois has taken
How Terra Luna can recover - and why its current plan doesn't work

Host: Jason Choi @mrjasonchoi . Not financial advice.

------------ Timestamps -------------

(00:00:00) – Introduction

(00:02:20) – Kevin's Thoughts After Luna's Crash

(00:03:53) – Why Did Kevin Think Luna Would Collapse One Day

(00:08:23) – Feasibility of Algorithmic Stable-Coins

(00:16:44) – Shorting Luna or UST

(00:23:06) – Pulling The Trigger On The Short

(00:26:47) – Conviction On Bearish Luna Thesis and Past Plays

(00:34:10) – Black Swan Event or Long Time Coming

(00:40:47) – Thoughts on Terraform Lab's Proposals

(00:54:47) – Replacing Do Kwon To Save Luna

(00:56:31) – Projects That Could Also Death Spiral

----------- Sponsors -------------

dYdX is the Leading Decentralized Exchange for trading perpetual contracts. Users enjoy low fees, deep liquidity, up to 20x more buying power and even earn $DYDX from trading. Trade on dYdX today at: https://trade.dydx.exchange

----------- More Resources ---------

Guest

Galois Capital's Twitter: https://twitter.com/Galois_Capital

Blockcrunch

Blockcrunch VIP: https://blockcrunch.substack.com

Blockcrunch Twitter: https://twitter.com/theBlockcrunch

Jason Choi’s Twitter: https://twitter.com/mrjasonchoi

------------ Disclosures -------------

Disclaimer: The Blockcrunch Podcast is an educational podcast and newsletter for informational purposes only. The host invest in cryptoassets actively and may hold assets discussed in the newsletter or podcast. All content contained within this podcast is intended for educational purposes only and should not be construed as any form of financial advice. The Blockcrunch Podcast, its associates and affiliates are not liable for any decisions third parties choose to make.