Joined March 2023
newpage retweeted
Interesting comments from Jordi, but I respectfully disagree on the point of pre-IPO derivatives being inferior to SPVs and tokenized access. All perp markets are zero-sum; this is definitionally correct. But even zero-sum instruments can produce useful risk transfer. Derivative instruments have their own quirks, but they do not require underlying shares to change hands for every position. The current state of private markets is extremely exclusive, and existing tokenized/SPV products inherit those limitations. These structures can be clunky, slow to close, and constrained by available shares and transfer restrictions. Layered SPVs can introduce high fees, carried interest, counterparty risks, etc. Our belief is that hedgers and speculators can coexist on a fair orderbook, enabling continuous price discovery for typically illiquid assets. There are accounts already short low to mid 7 figures on @entropyIO markets only 1.5 months after launch, and we expect this trend to continue and grow. We have identified participation from institutional prime brokers executing total return swaps for clients, Anthropic shareholders hedging their share exposure, and traders using our perp as a way to both speculate and hedge other legs of trades. For existing shareholders, shorting a pre-IPO perp can serve a similar economic purpose to selling shares through an SPV: reducing their company exposure while allowing a broader audience to take the other side, without requiring the underlying shares to change hands. We believe this to be useful risk transfer, even when the instrument itself is zero-sum. On Jordi's broader point, I agree -- we should be doing more to provide earlier access to companies' growth. But broader access shouldn’t depend on navigating the complications of SPVs.
Jeff drank a bit too much of his own Kool-Aid in this recent Odd Lots clip. I think it's important to clear up a distinction that makes all the difference. Democratizing access to wealth creation is NOT the same as democratizing access to speculation. Many of us genuinely want broader participation in attractive investment opportunities. The growing wealth inequality produced by the current system is tearing at the seams of society, something I've spoken about many times. But let's be clear: listing pre-IPO perpetual futures does absolutely nothing to democratize the wealth being created in private markets. I've seen this misleading narrative pushed repeatedly by perp DEXs lately, and it needs to be called out. A pre-IPO perp creates ZERO underlying wealth. It's a zero-sum contract before costs, and negative-sum after them. No capital flows to the company. No ownership changes hands. No new economic opportunity is created. Every long has a short. There is no free lunch in simply going long something before its IPO, and funding costs can even determine the outcome more than any price moves. TRADING access is NOT INVESTING access. In fact, in many ways pre-IPO perps are almost the antithesis of democratized access: They create the illusion of participation in private-market wealth creation, while actually offering retail a speculative instrument whose mechanics they are often poorly equipped to understand. The result is a playground for the FEW sophisticated traders who understand funding, oracle design, and liquidation mechanics to extract value from the MANY who don't. To give credit where it's due, Robinhood's efforts toward sourcing actual employee shares, placing them into SPVs, and tokenizing genuine spot ownership are much closer to meaningful democratization. That can unlock real economic value by allowing employees to exchange some of their expected upside for liquidity, while giving new investors actual economic exposure. A legitimate financial trade-off, without the funding-rate and liquidation shenanigans. I'm strongly aligned with expanding access to investment opportunities. And I believe advances in AI and blockchain can dramatically lower the barriers to discovering, structuring, and distributing them. But let's not BS ourselves that launching another zero-sum casino contract is moving the needle on wealth inequality. What would actually move the needle is bringing real capital formation and ownership onchain. Giving investors access to productive, illiquid assets like data centers, GPUs, and select startup investing, where capital can actually finance growth and share in the resulting value creation. These opportunities are harder to structure, underwrite, and bring to market, and we haven't seen many compelling implementations onchain yet. Hopefully this will change soon and, as the industry matures, we can direct more of our energy toward actually expanding access to wealth creation. Clip below. Was glad to see @tracyalloway push back on this framing, and to Jeff's credit, after this he does seem to walk back his original position somewhat.
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The third round of Entropy affiliate badges has been distributed. Invitations have been sent on X, and recipients will find further instructions in their DMs. Thank you to everyone who continues to support Entropy. Every contribution is noticed, and the next round will follow soon.
The first set of Entropy affiliate badges have been distributed. If you post about markets, break news, or build an audience that actually trades, you qualify.
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Entropy’s Pearl perp market became the largest and most liquid, one day after launch. Financializing compute has always been of interest to me, and I’ve been following Pearl since shortly after the first whitepaper. I remember wondering at the time if they could overcome the verification issue that sidelined other compute projects. Having since met the team, it's clear why they were the ones to solve it. Entropy is working to make frontier assets more accessible. Pearl fits that bill exactly: if it scales, it could universally drive down the cost of compute. A more liquid market for Pearl directly contributes to that end. Excited for more listings like pearl-2:native
1/ We are excited to list PEARL, and are extremely aligned with our friends @prlnet in their mission to make the frontier of inference more useful and efficient.
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Replying to @0xNessus
Yes
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yay more surprise news on the company that underpins the global economy
JUST IN: Anthropic drops 7% in an hour on Entropy as some investors cut IPO expectations from $2 trillion to $1.5 trillion. Yesterday, Anthropic told investors revenue growth halved since last quarter.
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$SNDK max leverage has been increased to 15x.
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Anthropic dropped ~4% on Entropy today after revealing financials to investors at its pre-IPO investor day, pushing its valuation below $2T.
🤖 Made with AI
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when I was in singapore, pearl was by far the most requested asset. more frontier listings coming soon
1/ We are excited to list PEARL, and are extremely aligned with our friends @prlnet in their mission to make the frontier of inference more useful and efficient.
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New listing: Xiaomi ($HK1810) at 10x Leverage.
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The second round of Entropy affiliate badges has been distributed. Invitations have been sent on X, and recipients will find further instructions in their DMs. We follow the activity of everyone who supports Entropy and value every contribution. Additional rounds will follow.
The first set of Entropy affiliate badges have been distributed. If you post about markets, break news, or build an audience that actually trades, you qualify.
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Great read from @matt_levine. The pricing gap does not have to be a persistent issue. Holders of the underlying can sell the perp against it, and we’re seeing institutional prime brokers start to hedge equity exposure this way.
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market has reverted the gain from the 70b number last week. perfectly balanced, as all things should be
OpenAI dropped ~6% in under an hour on Entropy after the FT reported its annualized revenue is closer to $50B, not the $70B that circulated last week.
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New listing: Tencent ($HK700) at 10x Leverage.
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Pleased to announce the start of Entropy badges. These will go to the Entropy community members who contribute most in any form: Trading, deeply engaging with the research, or consistently posting high quality content. I’ll be hand-distributing badges daily.
The first set of Entropy affiliate badges have been distributed. If you post about markets, break news, or build an audience that actually trades, you qualify.
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Entropy is now live inside @TrustWallet. Trust Wallet has been one of the most important builders expanding the Hyperliquid ecosystem, and we are excited that Trust Wallet users can trade Entropy markets without leaving their wallet.
Welcome @entropyIO to Trust Wallet. Entropy's integration provides access to more Hyperliquid perp markets, including trending pre-IPO perp markets. More markets, more flexibility. Just use Trust Wallet.
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Applications for the Entropy Partners program are now live.
Excited to launch the Entropy Partners program. It's been really enjoyable seeing the community make all sorts of content about Entropy: how-to guides, research on liquidity and market design, even mockups of future merch. The Partners program is designed to reward that type of involvement more effectively than our existing referral system. The form to apply is linked below. We will personally review every submission. docs.google.com/forms/d/e/1F…
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Excited to launch the Entropy Partners program. It's been really enjoyable seeing the community make all sorts of content about Entropy: how-to guides, research on liquidity and market design, even mockups of future merch. The Partners program is designed to reward that type of involvement more effectively than our existing referral system. The form to apply is linked below. We will personally review every submission. docs.google.com/forms/d/e/1F…
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OpenAI spiked ~7% in under an hour on Entropy after reports that its annual recurring revenue is nearing $70B.
JUST IN: OpenAI is now approaching a $70B annual recurring revenue run rate, putting its latest growth trajectory among the fastest seen in the AI industry.
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