- Rob Catalanello, a 26-year Wall Road banking veteran, is the CEO of crypto buying and selling agency B2C2.
- Catalanello instructed Insider how B2C2 supplies liquidity to the market by making two-way costs 24/7.
- He additionally shared why he thinks bitcoin may attain $70k by Dec. 15, and two undervalued altcoins.
On Might 19, bitcoin took merchants on a wild experience with a same-day 30% plunge and surge, inflicting outages on main crypto exchanges. That was the type of day for crypto market maker B2C2 to shine.
“It was trying fairly ugly,” Rob Catalanello, co-CEO of B2C2, instructed Insider in an interview on the Chicago Trading Show. “We had our each day assembly and I used to be like ‘guys, bear in mind your coaching, hold respiratory, and we will probably be good.'”
Catalanello, a 26-year Wall Road veteran who had labored at Credit score Agricole, Merrill Lynch, and Goldman Sachs, was unperturbed as a result of his workforce was on prime of all of their consumer positions and their very own steadiness sheet.
“In contrast to anyone else, we even have a dwell view of our steadiness sheet 24 hours a day seven days per week, so we all know precisely the place all our cash is,” he mentioned, “which actually turns out to be useful on a day once we settle over $1.5 billion.”
Amid bitcoin’s excessive value swings on Might 19, some crypto exchanges stopped settling trades for some time however B2C2 stored on pricing, settling, and risk-managing trades even when clients had been calling for giant orders. In actual fact, the agency’s world workforce did a document 725 particular person settlements in a 24-hour interval, in keeping with Catalanello.
“Exchanges are solely pretty much as good because the pricing that goes into it as a result of an trade is a spot the place consumers and sellers meet,” he mentioned. “What we do is we’re the knuckleheads who’re on the market choosing up pennies in entrance of steamrollers.”
Bitcoin to $70,000 by December 15
Catalanello recalled that when he first bought into crypto in 2019, it took loads much less to maneuver bitcoin 10%, however the strikes are considerably dampened as extra
is within the system.
Nonetheless, large world regulatory and political actions can nonetheless shake the markets fairly a bit. For instance, he famous that liquidity, notably in a number of the altcoins, has change into thinner ever since China introduced it was banning bitcoin buying and selling.
Whereas B2C2 doesn’t take a directional view on bitcoin, Catalanello personally thinks bitcoin may attain $70,000 by December 15 this 12 months.
The explanation, he believes, is that the congressional gridlock over the Biden administration’s $1 trillion infrastructure invoice is weighing on shares and the economic system. The market is nervous about President Biden’s nomination of Saule Omarova, a legislation professor who’s essential of crypto and has advocated for extra regulation of huge banks, to run the Workplace of the Comptroller of the Foreign money. Moreover, inflation, as measured by the PCE value index, lately surged to a brand new 30-year high, he added.
“All of this can be a snowball impact and that is good for crypto,” he mentioned. “Shares have bought off very aggressively however crypto has carried out fantastic.”
2 undervalued valued altcoins
B2C2 makes markets in 14 cryptocurrencies. It doesn’t go down the meals chain by way of altcoins as a result of only some altcoins commerce in a approach that matches the agency’s 24/7 quoting enterprise mannequin.
Earlier than his workforce can contemplate quoting an altcoin, they need to be sure that it may be traced by way of on-chain analytics, has enough client demand, and has a sufficiently big float the place he can borrow these cash to fulfill quick positions that come up from shoppers’ market-making.
One other issue that makes him cautious about altcoins is solely the sheer variety of them, most of that are most likely not going to make it. However Polkadot (DOT) and Solana (SOL) are two altcoins with “implausible” underlying expertise, he mentioned.
Created in 2016 by Ethereum co-founder Gavin Wooden, Polkadot, which has been known as “the web of blockchains,” is a protocol that goals to allow completely different private and non-private blockchains to attach with one another.
Catalanello thinks Polkadot’s native token, which is especially used for governance and staking, may commerce between $45 and $50 by the tip of the 12 months. That might mark an as much as 61% surge from its present value degree of about $31 as of Tuesday night.
Solana is a decentralized blockchain that achieves consensus by way of a hybrid of proof-of-history and proof-of-stake fashions. It is among the quickest and lowest-cost blockchains with over 400 initiatives spanning DeFi, NFTs, and Web3 in its ecosystem.
“Solana can course of over 50,000 transactions per second and has very sturdy expertise,” he mentioned. “Individuals simply hold wanting to purchase it.”