Algod also wagered one million dollars against Do Kwon’s prediction that LUNA would be reduced to zero within a year just a few weeks before it did so.
A few weeks before the collapse of LUNA, the popular cryptocurrency exchange Algod bet the CEO of Terraform Labs, Do Kwon, $1 million that the cryptocurrency would not be able to maintain its trading price over the course of a year.
Algod Placing a Bet Against Another Crypto-Based Criminal
The cryptocurrency trader known as Algod, who gained notoriety after placing a wager of one million dollars on the collapse of Terra some weeks before it really occurred, is making “size” from countertrading Jim Cramer.
On Monday, Algod announced that they had doubled their profits since the introduction of their “inverse Jim Cramer” account via a Twitter update that was put on the company’s “inverse Jim Cramer” account. According to Algod, they began the account with $50,000, and their post reveals that the account’s current net value is $101,440.71. “Some people work a 9-5 job, whereas I simply countertrade Jim Cramer… it’s not much but honest work,” Algod commented. “It’s not much but honest work.”
In the world of cryptocurrencies, the term “countertrading” refers to the activity in which traders place bets against the calls made by other market participants, typically because they have the preconceived notion that the other market player will make an incorrect call. It is the antithesis of “copy trading,” a practice in which investors try to replicate the success of other traders by imitating their trades in the hopes of “riding their coattails” to financial success. Due to the fact that Cramer has become into a running joke in the crypto space as a result of a number of poor calls in the past, many crypto aficionados have already pondered the possibility of countertrading him. There is also a Twitter account called Inverse Cramer ETF, which most likely served as the inspiration for Algod. On this account, over 84,000 followers track Cramer’s calls to determine what to bet against in the future.
In spite of the fact that Cramer is more recognized in the mainstream world for his predictions regarding equities, he has also made a number of mistakes regarding cryptocurrencies in the past few months. For example, he referred to Ethereum as “terrific” and recommended that investors could “easily” bank 35 to 40% profits on ETH in April, when it traded at approximately $3,000, when he said that investors could “easily” bank 35 to 40% returns on ETH. After a few weeks, it dropped by more than 70 percent. Cramer soon after said that cryptocurrency had “no real value,” therefore concluding that it had no future. His remarks more or less signaled a local bottom, from which point Ethereum and other assets soared by more than 100 percent in a matter of weeks.
“Your Size Is Not Size”
As cryptocurrency prices have increased over the past several weeks, Cramer has once again weighed in on the market. This has prompted Algod to open his countertrading account. After Cramer indicated that he had gained renewed trust in the asset, Algod’s most recent transaction reveals that they were successful in making a profit of $25,162.11 from shorting ETH.
This year, Algod, one of the largest whales on Crypto Twitter, has become recognized for their trading technique, which can be described as being quite unorthodox. Their wager in March of one million dollars against Terraform Labs CEO Do Kwon that LUNA would not be able to maintain a price higher than its existing price (which was $88 at the time) for a period of one year has become perhaps their most famous action. Kwon is sure to be remembered for telling Algod around the time of the wager that “your size is not large,” which was an apparent jab at the size of Algod’s portfolio. A few weeks later, LUNA disintegrated into nothing, which prompted Algod to criticize Kwon again and direct it at him. It would appear that Algod’s approach of trading against crypto’s biggest villains is continuing to be profitable. This is evidenced by the fact that the “inverse Jim Cramer” account has gotten off to a successful start.