Wintermute CEO: Recent rumors of "institutional collapses" are extremely unreliable. The current crypto market is more orderly and the risks are controllable.
PANews reported on February 7th that Evgeny Gaevoy, CEO of Wintermute, published a lengthy article on the X platform, expressing strong skepticism about rumors circulating in the market regarding a "large institution's liquidation." He believes that even if individual institutions experience problems, it is unlikely to have a medium- to long-term systemic spillover effect. Historically, when 3AC collapsed after the Terra incident, the industry quickly confirmed the news through internal communication channels; the FTX incident also rapidly revealed risk signals during discussions with Binance regarding a bailout. Currently, no similar signs have been observed, and related rumors mostly originate from anonymous accounts lacking credibility.
Evgeny Gaevoy believes that the leverage in this cycle primarily comes from perpetual contracts. Compared to the leverage facilitated by opaque, unsecured lending platforms like Genesis and Celsius in the previous cycle, its structure is more orderly. Exchanges have also learned from their margin management mistakes and are using mechanisms like ADL to avoid losses. Furthermore, he believes that no institution would now adopt FTX's model of investing user deposits in illiquid assets. Finally, he states that if a company truly goes bankrupt, publicly denying it is very risky, especially if the company is located in Europe, the US, the UK, or Singapore, potentially facing lawsuits.
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