Posted Nov 23, 2022, 11:57 AMUpdated Nov. 23, 2022, 1:43 p.m.
Alameda Research promised at its debut in 2017 performances “ at the Madoff », regular and without risk. A long calm river. While conceding that the crypto market “is exciting and dangerous”, the trader ensured a 15% return per year. He assured future investors that they could withdraw their money at any time. Those who entrusted him with more than $50 million could expect to receive an even higher return. In 2018 during the market plunge, it had gained between 4% and 10% per month. Something to impress investors.
Sam Trabucco, the former co-director of Alameda Research, a fan of Blackjack with Caroline Ellison, had given some information on this mysterious cash machine before his departure in August. At its beginnings in 2018 and 2019, it practiced arbitrage without betting on the rise or fall of the market. She did “market making”, she bought and sold cryptos to investors by capturing small price gaps. Like other trading firms, it also exploited the price differences that may exist on a crypto listed on several platforms in different countries and in particular in Korea and Japan. This is the reason why she had left California to settle in Tokyo. A “success story” that would not last.