Chapter 217: An unprecedented hurricane in the cryptocurrency space

The account Samad received a lot of attention on Twitter. With large-scale real-time operations within a month and a 100% winning rate, it was like a tsunami that swept every practitioner in the cryptocurrency circle.

The birth of BTC is closely related to computing power and graphics cards. The development of artificial intelligence has enabled BTC to have various price prediction models very early on.

Before Samad, the most famous price prediction model in the industry should be the LSTM model, which has been used in predicting BTC prices for a long time. People have built different models based on LSTM.

(LSTM, long short-term memory network, a latent variable autoregressive model, has been verified to be a reliable model in BTC price prediction.)
With an accuracy of more than 15 days, some price prediction models built based on LSTM can achieve an accuracy of 69.9%.

But 100%, not only has no one done it, no one has even heard of it.

As the price of BTC rises and the market size expands, more and more people are studying BTC. There is no shortage of full-time players around the world who make profits by studying BTC, as well as various gold diggers who hope to get rich overnight through cryptocurrencies.

Cryptocurrency is a much larger market, far larger than BTC.

People began to explore various price prediction models a long time ago and tried to arbitrage through these models.

It was previously widely believed that no model could guarantee a 100% winning rate in the cryptocurrency field.

There is a famous question on Quora: Can we use deep learning models to predict future BTC prices?

The top answers to this question are all:
“No, because cryptocurrencies, and certainly BTC, are an unregulated futures market, which means that not only is it susceptible to manipulation, but there are no regulatory penalties for such manipulation.

Deep learning models cannot take this into account. If you want to achieve 100% arbitrage, you probably need to own several exchanges, not just one.”

“No, because any advantage given by any indicator will eventually be arbitraged or front-loaded. For example, if an indicator tells us that BTC is about to rise, then as traders use this indicator to buy call options on a large scale, the indicator will eventually become less reliable and worthless.”

There are countless similar answers, and no one thinks BTC is predictable.

Until Samad came out of nowhere, this issue was brought up again. Everyone used Samad as an example to ridicule those who answered the questions for their lack of foresight.

Some of the respondents said: "It's only been a month. This time doesn't mean anything."

Two months later, the BTC held by Samad was still rising. In the total of 60 days, there was not a single day with a negative final yield, and the size of assets was increasing every day, even though various events occurred during this period.

For example, when China took back the Penghu Islands, America claimed that this was unacceptable, various forces quarreled endlessly, and the capital market was in turmoil.

The world is changing, but Samad remains the only one who posts a screenshot of his daily profits at 10pm Kuala Lumpur time every day.

In the second month, he even included every transaction.

All the cryptocurrency podcasts around the world are discussing who Samad is, the purpose of updating the real market every day, and what strategy he actually adopted.

"Good morning, listeners. At 3pm yesterday, Samad updated his account screenshots as usual. The returns on his accounts with a total market value of more than $1 million across three exchanges were positive again.

Samad has maintained this record for 60 consecutive days, and its Twitter followers officially exceeded million on this day.

The number of cryptocurrency holding accounts worldwide is around 2.2 million, and the actual number of holders is probably less than 2 million. That is to say, more than % of cryptocurrency holders follow Samad, which is an astonishing proportion.

I am very curious about when the number of followers of Samad's account will surpass Musk. In a sense, Samad's appeal in the cryptocurrency circle has surpassed Musk.

Once he says he is optimistic about a certain cryptocurrency, the price of that cryptocurrency will start to soar within a minute.

This is also the consensus among practitioners.

I believe that Samad’s Twitter account has received letters from web3 practitioners, hoping that he can speak up for the virtual currency he manages.

However, Samad updated his trading screenshots as unfailingly as artificial intelligence.

I know that as many of my fellow listeners in front of the radio hope that the legend of Samad will continue, as many hope that the legend of Samad will be shattered.

This morning's Samad moment is over. We will broadcast Samad's Twitter sharing simultaneously every day. Next, let us move on to today's industry dynamics. Well, I took a look at the industry dynamics, and they are still full of Samad elements.

Bigwigs from all sides came out to express their wish to meet Samad and cooperate with him.”

Samad has created a tsunami in the cryptocurrency circle. As time goes by, Samad's undefeated record continues, and the attention it attracts becomes stronger and stronger. In the virtual currency circle, Samad's name is known to everyone.

Cryptocurrency podcasts have been booming in recent years. If the podcast host does not talk about Samad’s latest achievements in the opening remarks, the listeners who click in will have no interest in continuing to listen.

Samad is like a hurricane and everyone is forced to talk about it.

The exchanges where Samad has registered accounts also want to take advantage of this wave of popularity and show their presence: I am the exchange chosen by Samad, so I have enough credibility, right? Come and play with me.

Those exchanges that were not selected sent private messages frantically on Twitter, feeling that they were inferior without Samad certification.

Oraz Krebaev felt like he was in the middle of a hurricane.

Since joining Alpha Technologies, when he walked on the streets of Kuala Lumpur and smelled the moist air of the rainy season, he would have the illusion that he was in the center of a hurricane, with reality and virtuality intertwined at this moment.

Before Oraz became the first employee of Alpha Technologies, he hosted a personal blog on the Malaysian Internet, where he frequently updated articles related to cryptocurrencies and cryptocurrency regulatory strategies in Malaysia.

It was a normal day like before. After he posted an article he had prepared for a long time: "Malaysia's Cryptocurrency Regulations - 2024 Guide", he lay in bed as usual, thinking about the content of the next issue.

“In the 2019 cryptocurrency regulations, Malaysia does not recognize cryptocurrencies as currencies or payment instruments, they consider them to be securities. As such, it is regulated under the Securities Act and not the Currency Act.

Malaysia's central bank has been warning of the risks of cryptocurrencies, believing that digital assets are not a store of value or a good medium of exchange.

However, Malaysia's communications and multimedia department believes that digital currency should be embraced vigorously, and that cryptocurrency should be promoted to become the mainstream currency and to expand young people's participation in cryptocurrency.

The different positions of the two have caused cryptocurrency to be in a gray area in Malaysia, and it is difficult to have clear regulations to define what it can and cannot do.

This time I wrote about the changes in Malaysia's cryptocurrency bill. I can feel that this legal change is preparing to provide a unified legal framework for digital assets and related assets in the future.

Then I can write next time about what Malaysia plans to do in the field of cryptocurrency law in the future.”

While thinking about what to write next and scrolling through Twitter, Oraz received a private message: "Hello, I read your personal blog and think you are very talented. Are you willing to work for me? I will pay you $50000 a year, paid weekly in cryptocurrency."

Oraz immediately sat up in bed. It was not surprising that the Twitter user named Samad knew his personal blog because he had pinned it on the top of his blog. His blog was quite famous in Malaysia.

But this amount is a bit of a joke. A salary of US$5 a year is definitely a high salary in Kuala Lumpur, even in the field of cryptocurrency.

There are many cryptocurrency companies in Kuala Lumpur, such as Neco Finance, Robinhood, Coinbase, etc. The annual salary of cryptocurrency experts in these companies ranges from US$50000 to US$576000.

But these are cryptocurrency experts. At best, he is an enthusiast who is particularly familiar with the cryptocurrency laws and regulations in Malaysia. With his resume, he can't even get a job at Robinhood.

Fifty thousand dollars was enough to satisfy Oraz. He clicked on Samad's account and took a look. There was only one tweet and a few pictures, and the total account balance was more than fifty million dollars.

There was only this one tweet, which made Oraz suspect that the other party was playing a trick on him by his friend.

Considering that there was no loss in replying, Oraz carefully typed a reply on the iPhone keyboard: "Mr. Samad, I am willing to work for you. Can you tell me where the interview will be held?"

Twitter responded quickly: "No need for an interview. Send me your cryptocurrency account. If you don't have one, please register. I will send you this week's salary and you can start working at 9 a.m. tomorrow."

Oraz looked at the extra BTC worth $961 in his account in a daze. Could it be some criminal group?

Later, he never met Samad, but received work instructions from Samad through WhatsApp.

Renting an office, hiring people, setting up a company, and establishing an internal organizational structure, these things have nothing to do with cryptocurrency, and the subjective initiative he needs to exercise is zero.

Oraz found that he didn't need to have a brain at all, he just needed to follow Samad's orders.

The work assigned to him is a no-brainer.

Oraz has always kept the chat records of his conversations with Samad's Twitter account. As Samad's fame swept the entire cryptocurrency circle, Oraz would often click on Samad's account homepage from this chat record.

He watched the number of followers of this account grow from less than 10 to over 1 million, and as a senior fan, he also watched how Samad went from being an unknown pawn to a legend in the cryptocurrency circle.

In just two months, the total market value of BTC, which previously had a scale of 2 million, has exceeded million US dollars, and BTC has also experienced a round of plunge in the meantime.

Oraz's heart was filled with admiration for his boss and the urge to see him in person.

It’s just that the other party never gave him a chance, just like a robot giving orders, never giving him room for small talk.

"Go and sign a contract with a Chinese company called Quantum Shield for the purchase of the Haohan-I quantum computer."

A purchase contract was then sent.

“Let the legal department and external law firm review it, and then sign it accordingly.”

Such an order filled Oraz's heart with all kinds of speculations. The outside world generally believed that Samad had achieved an unprecedented stable rate of return by relying on breakthroughs in the field of algorithms.

A four-fold return rate in two months is not considered high in the cryptocurrency circle where myths abound. Returns of several thousand times appear every now and then. The terrifying thing about Samad is the stability of its return rate. A straight upward curve without any retracement is frightening.

I feel that I am not fighting against people, but against God.

It is even more difficult to achieve such a large amount of money and announce it to the whole world in public.

“Could it be that quantum computers have an unimaginable effect on the prediction model of cryptocurrency?
Previously, when China achieved a breakthrough in the field of quantum computers, various media outlets were saying that quantum computers were still a long way from being practical.

Quantum computers are still in their infancy.

Has the boss found a use for it?

I think so, otherwise why would we spend nearly $10 billion to buy a quantum computer from China?"

At present, except for Oraz, no one knows what obvious connection there is between Samad, the cryptocurrency tycoon who is very influential on Twitter, and the little-known Alpha Technology.

Even if the owner of Alpha Technologies registered in Malaysia is called Samad, no one would associate this Samad with that Samad.

However, the hurricane created by Samad will soon sweep the world, making the world aware of who Samad is.

(End of this chapter)