- Darius Sit built crypto trading firm QCP Capital from a 2-man prop shop into a crypto options empire.
- They’ve pioneered DeFi options, trading around $250 million notional in one week.
- He explains how the options can generate alpha and where risks currently lurk in the crypto market.
Many of the top crypto trading firms and traders formed out of the 2017 bull run where they capitalized on a highly lucrative trade known as the “kimchi premium”.
This was the gap in bitcoin prices on Asian and Western exchanges. There was a vast spread of around 50% at its peak between exchanges in South Korea and the US.
This trade helped 29-year-old Sam Bankman-Fried become a crypto billionaire. He capitalized on the arbitrage opportunity between Japanese and US exchanges and netted himself 10% daily returns on million-dollar crypto trades.