Jump Crypto President Kanav Kariya on the Wormhole hack, market making, and crypto outlook

Introduction - Kanav is the President of Jump Crypto (@JumpCryptoHQ) - Jump Trading is one of the largest quant trading firms in the world and moved into crypto ~6 years ago - Grew into what Jump Crypto is today with 140 employees - Jump Crypto has been trading, building and investing in the space - Ledger: Who wins in a cage match, Alameda or Jump? Kanav: Depends on the rules! - Crypto was a trading problem to solve at first, sandbox environment for people to play with without messing up existing systems - As the space started to grow and as DeFi emerged there was a similarity to traditional environments and they got more involved - Own crypto on the their balance sheet not just when making plays Intern to President - Jump is a very flat organisation usually three levels at most away from the top - A lot of freedom to work on things and push it further with more resources for what works - Kanav worked early on crypto projects that performed well and it led to getting his position and still building out the team - All in, all of the time. Always looking for engineers and ops people - Recently brought on a CMO Sophisticated Competition - Jump and most traders are playing on different time horizons e.g. seconds to minutes - Smart contracts and aspects of DeFi are less competitive as firms are still apprehensive Trading Systems - Some are highly automated others have more manual intervention. Alpha building process to build prediction models then plug it into an execution system - However there are things about the markets the models aren’t aware about that someone with pulse on the market would know - Mature risk management is in place taken from Jumps historical experience. A lot of it is hard coded in to prevent people putting on over sized positions - Not a lot going on with options markets, much smaller than everything else. Just because it hasn’t worked in the past doesn’t mean it won’t so will continue to watch Narrative Surprises? - Built the first highly electronic OTC desk but the narrative didn’t play out to the expected extent. Institutional narrative was slower to play out - a lot of red tape to get through for institutions and waiting for regulatory clarity but believes it’s still going to happen - How long Uniswap V2 has continues to be incentivised continues to be surprising Wormhole - CertusOne built the V1 and they were acquired by Jump. Wormhole connects 7 chains now transferring a lot of different information. Governed by 19 guardians, of which Jump Crypto is one - Wormhole had a 120K ETH hack recently - Developer noticed some discrepancies and they all jumped on a call to confirm the vulnerability then it was all hands on board to deal with it - Jump Crypto made the decision to backstop the funds Hopes for the future - Phantom and Solana pay type stuff - You see the uses on twitter, looks great - No on knows what a seed phrase is! We need better UX - On the gaming and metaverse side - i just want to have fun and be able to play a game - On the research side - ZK seems promising would like stuff there FINAL ALPHA - Harness the power of asymmetric upside - If you can see asymmetric upside and then place a lot of bets, you gmi

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Jump Crypto President Kanav Kariya on the Wormhole hack, market making, and crypto outlook is an episode from UpOnly with Cobie & Ledger by Ledger & Cobie Enterprises.

This episode is 01:26:23 long.

This episode was published on Feb 10, 2022.

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