CryptoCat on bullshit news, “breaking” stuff and Multi Collateral Dai
Hello DeFiers,
After going live on mainnet in September, we’ve had some traction on our trading platform and while still listening to user feedback and improving the product itself, we follow the mission of strengthening the community and supporting a communicative interaction between our traders:
Introducing My Two Gwei, a bi-weekly interview format powered by dex.blue,
discussing on-chain trading and getting the community involved. Let the pros share their experience and knowledge and let the beginners ask and learn.
We hope you stick around for what’s to come!
Content
In this first edition, we’re very pleased to have spoken to an experienced trader and a prominent member of the DeFi community: CryptoCat told us a little about himself and gave some insights on how to handle crypto news. Keep reading to find out!
A chat with CryptoCat:
Who is Cryptocat?
My Two Gwei: Can you start off by telling us how you got into DeFi?
CryptoCat: I lost BTC on MtGox back in the day. After that I left the space till the All-Time Highs in the end of 2017. I then discovered ETH and crypto games, then went on to DEXs and then DeFi. So, having an option to custody my own funds is really appealing to me.
MTG: What exactly are you doing now?
CC: I mostly market make, OTC, trying out anything new that comes along and trying to break stuff.
Had some fun with the ENS domain auction lately. Shout out to the awesome ENS team and their efforts!
MTG: Can you tell us, why you’re doing what you’re doing?
CC: Because markets are not efficient enough, and a lot of money is left on the table.
What’s CryptoCats approach?
My Two Gwei: As a trader, what are the main strategies you follow?
CryptoCat: Without going too much into details, I use Technical Analysis to determine which side of the orderbook to market make on.
MTG: And more specifically: How do you know what news and what information to act on?
CC: News is mostly a sell indicator. Most big opportunities occur outside of the news. I try and not act on news.
What is CryptoCat currently excited about?
My Two Gwei: Is there any recent news you think to be relevant at all?
CryptoCat: MCD launch should be exciting! Should shake up all the DeFi borrow/lend rates.
MTG: What does this mean for you?
CC: I’m trying to figure out the ripples from the launch in 2 weeks.
Considering loading up on MKR but concerned that it will go the other way!
MTG: Can you tell us how exactly you approach this?
CC: Like chess. Usually, people look one step ahead, I try and look further!
MTG: Do you just listen to your guts or is it more than that?
CC: Try to think of consequences and outliers. Dormant accounts becoming active and selling.
MTG: So, it’s really more of a technical analysis than analysis of the discourse, correct?
CC: Might be a combo of all.
What’s CryptoCats opinion on trading triggers?
My Two Gwei: Can you tell me how you differentiate the more dubious information from the relevant stuff? Or would you say the bullshit is also relevant because people act on it?
CryptoCat: I don’t know… Sometimes bullshit has more momentum than real news.
MTG: Is this something that harms the climate around investment and trading?
CC: It’s part of the game, I think. There can be no 100% true knowledge for every single player!
MTG: In what way is crypto any different to more traditional investment in this aspect?
CC: This is a much more uncertain environment.
MTG: Does this speak for or against it?
CC: The lack of verified data makes unverified data as actionable, in crypto, in my opinion.
MTG: How can this change do you think?
CC: 1. Get verifiable data. 2. Cannibalise the dumb.
MTG: 1. You’re thinking on-chain here? 2. Could you elaborate?
CC: 1. Nah, that is too dry and technical for mainstream!
2. Well, if the dumb lose all their money due to fake news, we evolve a breed of people who don’t care for news and do not act on that.
What does CryptoCats expect in the future?
My Two Gwei: Last but not least, we are of course super excited about the recent developments in the DeFi space. How do you evaluate these developments?
CryptoCat: Well, I try them. Then I complain to the teams when I see things, I don’t like :D
MTG: What are generally your expectations for the future of DeFi?
CC: Got to grow the liquidity, that will bring more users, and the cycle will continue!
