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Opinion
Matt Levine

Who Can Resist the Crypto Boom?

Also SALT tax arbitrage, going public by accident and Web3 miscellanea.

Corrected

I guess the most straightforward interpretation of the news that Paradigm, a crypto venture capital firm, is investing in Citadel Securities, a market-making firm that does not trade crypto, is that Citadel Securities is going to start trading crypto? Like this seems unlikely:

Maybe, who knows, but my guess is the obvious one: The crypto boom is creating enormous gushers of wealth for financial intermediaries, Citadel Securities is a skilled financial intermediary that sits atop various long-running gushers of wealth (stock trading, etc.) that are starting to look just the littlest bit depleted, and it is eyeing all those fresh bubbly crypto gushers with interest. It takes money to build out a crypto business, but fortunately it is also extremely easy to raise money to build a crypto business, so here we are, here we are.