Gary

Recent allegations by acclaimed author Michael Lewis have cast a new light on the initial hurdles faced by Alameda Research, a pioneering cryptocurrency trading firm founded by Sam Bankman-Fried. 
In his biography titled “Going Infinite”, Lewis delves into the early days of <a href="https://crypto.ro/en/news/additional-fraud-accusations-brought-against-gary-wang-of-ftx-and-caroline-ellison-of-alameda/">Alameda</a>, shedding light on a period marked by significant financial challenges. 
Bankman-Fried, managed to rally a substantial amount of nearly $170 million from the ‘Effective Altruism’ community – a network of individuals committed to altruistic causes. These funds were designated for investment in the burgeoning yet inefficacious cryptocurrency markets. 
The strategy was to harness price variances across different markets through high-frequency trading (HFT) methodologies, aimed at capitalizing on minute price differences occurring within small time intervals. 
However, the initial journey wasn’t as smooth as anticipated. Alameda found itself ensnared in a mire of financial losses soon after its inception in 2017. A notable period saw the firm hemorrhaging over $500,000 each day for a month due to a series of losing bets. 
The scenario was exacerbated by poor fund management and erroneous trading algorithms. For instance, a bot named Modelbot was programmed to trade nearly 500 tokens across thirty <a href="https://crypto.ro/en/education/best-crypto-exchange/">crypto exchanges</a> without distinguishing between highly liquid and thinly traded assets, which further strained the firm’s financial resources. 
The narrative took a positive turn with the onboarding of Gary Wang and Nishad Singh, both of whom were directors at FTX. Their expertise in quantitative trading and managerial acumen steered Alameda towards a stable financial trajectory. 
Sam Bankman-Fried, who once claimed that his crypto hedge fund was making him a million dollars a day, is now experiencing the other side of the coin. His recent financial losses have led to legal complications, with his $250 million bail bond reportedly revoked in August.

Alameda Research lost over $500,000 per day for a month after its launch

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