Kevin Zhou is the founder of crypto quant fund, Galois Capital and former head of trading at Kraken. Last week, Terra, one of the most prominent ecosystems in crypto, effectively disintegrated in days. Its native token Luna had over $40 B in market cap at its peak, and nearly all of it was wiped out while UST, which was supposed to be a stablecoin worth $1 crashed. It was a historical moment in crypto as never before had a project that big, crashed so hard, so quickly. Kevin was one of the few who saw it coming and predicted the fall just a couple of months ago. In this interview, he talks about the red flags that helped him get to that conclusion. We also talk about whether there’s any hope for algorithmic stablecoins and explore potential alternatives for this type of asset. Kevin discusses the ripple effects we’re already seeing in crypto and more broadly, what to expect for the coming bear market.

🙏 Thanking our podcast sponsors:

dYdX, the decentralized exchange, launched a Grants program with funding allocated to open-source builders, contributors and ecosystem integrations to help build its V4. Apply now!
Oasis is the leading, scalable, and privacy-enabled, layer-1 blockchain, ideal for DeFi. Learn More and experience the benefits of the network.
1inch finds the best rates across multiple networks. Why use a single DEX when you can use them all? Find your best deal at 1inch.
Tracer DAO’s Perpetual Pools - Liquidation-free, long-term leveraged tokens allowing you to long or short anything - commodities, cryptocurrencies, equities; even NFTs.

Terra Post Mortem and Future with Kevin Zhou, One of the Few Investors Who Predicted the Crash

The Defiant - DeFi Podcast