TechFlow news, November 18: Wintermute founder Evgeny Gaevoy (@EvgenyGaevoy) engaged in a heated discussion with Arthur, CEO of DeFiance Capital, on social media regarding the market structure of crypto derivatives. Arthur pointed out that the product design and market structure of crypto perpetual contracts are the biggest obstacles to the industry's sustainable development.
Gaevoy responded that traditional finance has long solved these issues, questioning the need for the crypto industry to reinvent the wheel. He specifically noted that CME already offers four types of crypto derivatives trading fully aligned with traditional financial practices.
The discussion focused on conflicts of interest arising from centralized exchanges simultaneously serving as brokers, trading platforms, and custodians. Although this model is difficult to change in the short term given cryptocurrency's nature as a held asset, traditional finance has effectively resolved similar issues by mandating the separation of these functions.
