Jeff Dorman
@jdorman81
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CIO @arca - digital assets investing | Former COO of Harvest Exchange | Former Lehman, Merrill, Citadel | Huge Cleveland Sports Fan | CFA charterholder
Los Angeles, CA
Joined December 2010
There are a few Crypto hills that I will die on. I've been writing about these topics, and debating people for years. Today I'm laying them all out in one place. I will happily debate any of these topics with anyone at anytime. A thread👇
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Worth repeating: If you list everything with fair, transparent rules that anyone can adhere to -- you're an exchange If you selectively list assets, treat clients differently, and your clients are constantly losing money, you're a broker (and probably not a good broker)
If you list everything, you're an exchange If you selectively offer good assets only, you're a good broker If you purposefully do NOT offer good assets, but list all absurdly crappy assets, AND list the assets at prices that go straight down, you're a bad broker (i.e. Coinbase)
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If a Degen falls in a levered forest, does it even make a sound? 6 takeaways from the crypto crash: 1) This was largely a technical, or mechanical flash crash, and not a fundamental crash. Typically much faster recoveries from technical crashes. 2) This is not the exchanges’
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Crypto - calls for end of the world, blames everyone other than the obvious (too much leverage on volatile assets with poor liquidity & untrustworthy price oracles) Equities - “how was your weekend? Prices look lower - let’s buy the dip”
S&P FUTURES +1% NASDAQ FUTURES +1.2% BRENT CRUDE EXTENDS GAIN ABOVE 1% AS TRUMP EASES TONE ON CHINA
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Almost always the case. Collectively traders are throwing darts. Occasionally one hits big and people overrate their skill / knowledge. Then they keep pressing what made them famous and never hit again Kyle bass, John Paulson, Burry, roubini, taleb, Hwang, James Wynn, SBF, etc
BTC whale is back. Just added to his BTC shorts. Maybe he doesn’t have any inside information and just gambling.
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two things that I believe are not true about the crypto crash 1) "low-risk trading strategies shouldn't have gotten liquidated" - Running an arb trade, or a long/short trade, is NOT "low risk". It may have lower directional price risk, but it does not have low risk.
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Absolutely hilarious how people don’t understand the market mechanics. This is not the exchanges fault. It’s your fault for not understanding there is no organic liquidity for 99% of names in crypto and it’s just market makers trading between themselves. When high vol
Crypto exchanges got a lot to answer for tbh, I thought they were thoroughly stress tested, apparently not This is 2025, not 2020, how can current infrastructure allow the entire altcoin market to flash crash -70% in minutes?
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Agree. This crash was more technical than fundamental. Fundamental crashes like ftx, Luna, 2008 mortgage crisis — tend to involve bankruptcies or fraud or massive exodus of investors Technical crashes like May 2021 flash crash and yesterday tend to have little follow thru
My thoughts on yesterday’s crypto crash: TLDR: We’ll be fine. We always are. I’ve been in this industry for 9 years now, and I’d say I’ve really seen it all. The COVID crash, the $LUNA meltdown, the FTX collapse, you name it. But what we witnessed yesterday felt very different
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Been saying for 7 years that crypto trades more like High Yield bonds than it does equities/commodities. Fragmented liquidity, no bids at all in times of stress, OTC desks vanish. Just b/c you can see a price on an exchange, doesn't make it real. This is normal in HY bond land
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This was inevitable. Goldman would never use JPM coin and BofA would never use Barclays coin, but collectively they can create an inter dealer coin standard that they all trust and profit from. Tons of examples like this — LIBOR, CDS, Bloomberg ownership
JUST IN: Major global banks are collaborating on plans to launch joint stablecoin Initiative: • Bank of America • Goldman Sachs • Deutsche Bank • BNP Paribas • Santander • Barclays • TD Bank • MUFG • UBS • Citi
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Full disclosure. I had a really nice chat with @azi_d20 and some members of the Coinbase listing team today. I know I’ve been tough on Coinbase, but it comes from a good place of wanting to help improve our industry. Today was a good start - both sides listened & empathized.
@jdorman81 Happy to chat about our listings process! Would love your insights into how we can improve and get you up to speed with what we look for. Feel free to DM.
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Here are a few charts of tokens NOT listed on Coinbase... $LEO $BNB $TRX $HYPE - Aren’t these high performing tokens the types of tokens you’d want crypto customers to be able to own? - Wouldn't you want to educate your millions of customers on why crypto investing can actually
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I've been pitching crypto as an investable asset class for almost 10 years, and the below explanation has by far the best success rate in terms of helping new investors understand this asset class. If you want more money invested in this industry, this is how you get it
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Also helps that equity investors look at a growth company & say, “that looks cheap, I’ll buy that. Stocks usually go up”… while token investors say “I’m so scared of 2022, & 4 year cycles, & Coinbase listed a shiny new inflationary piece of VC crap, maybe I should buy that”
Crypto Equities outperformance b/c $HOOD $COIN HAVE stronger fundamentals than DeFi / chains. Coinbase did $1.5B of net income in and Robinhood did $1.2B of annualized net income in Q2. Chains / protocols don't come close to $1B of buybacks other than $HYPE at ~$1B. Also CeFi
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Not sure the thesis really played out. $BTC benefitting from more than just the govt shutdown. But the entry point certainly was right.
The only time I buy BTC is when society loses faith in governments and local banks. $BTC likely a good buy here ahead of yet another U.S. government shutdown.
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If you list everything, you're an exchange If you selectively offer good assets only, you're a good broker If you purposefully do NOT offer good assets, but list all absurdly crappy assets, AND list the assets at prices that go straight down, you're a bad broker (i.e. Coinbase)
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I'd rewrite this as "Obviously revenue has been, & always will be, the most important metric for investing. It's criminal that exchanges, VCs, influencers, OTC desks & the media purposefully obfuscated the truth for so long with made up metrics to pump their bags & volumes."
More and more investors asking about revenue as a metric for evaluating different crypto assets. The space is maturing.
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wrote about the inevitable rise of Perp DEXs (2 years after the rise in Spot DEXs), and the $XPL launch, with a hit tip to @joeyreinberg_ Hint: bet on the sector "That's Our Two Sats" --weekly blog https://t.co/evSkodwdgi
ar.ca
Crypto markets saw record liquidations, Tether’s $500B ambitions, and the first real Perp DEX wars—despite falling prices.
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