Earlier this week, Tone Vays publicly announced that he was making his first bitcoin trade of the year. Shortly after entering the position, BTC saw a massive spike, jumping up 10% across all exchanges. The reason for the jump was very likely to do with Tether . After Binance halted Tether trading, the price of BTC skyrocketed as traders sold their Tethers at a loss in order to move to a safer asset like BTC.

Tone entered at the arrow below, and the price soon exploded up.

Source: CryptoCompare

Vays’trade is worth 5 BTC and is a short sell, meaning he profits if the price drops. The position was opened on BitMEX and uses the March 2019 futures contracts. Vays’entry is $6,158, his target is $5,000, and the position would be liquidated if price broke the recent swing high at $7,650. Tone explained on YouTube that he does not use a stop loss on BitMEX and instead prefers to get liquidated. Although the price of Bitcoin flew up, Tone’s position is still live. It was down 20% at one point but is now only down 15%.

Although his position might seem risky, he explains that the point of the trade was not only to make profit, but also to hedge his business’s revenue. In January of next year, Vaysis hosting a “Bitcoin, Not Blockchain, Conference And Celebrity Poker Tournament” called Unconfiscatable . Tickets for this conference must be paid for in Bitcoin, so in order to protect his business, Tone entered this short trade.

Twitter Response

As a public figure in the space, Vays received much criticism for his (currently) losing trade.

In addition to being a public figure, commentators pointed out that Vays has been bearish on the price of BTC all year. Despite this, he hasn’t entered a trade until now.

About Tone Vays

Tone Vays is a former derivatives trader, VP of Financial Systems at JP Morgan-Chase, and Assistant Vice President of Financial Systems at Bear Stearns. After leaving Wall Street, Vays has become a prominent speaker in the cryptocurrency space, providing fundamental and technical analysis on the growing cryptocurrency market.

Known for his multiple shows on YouTube - Trading Bitcoin, Bitcoin Morning Brief, and CryptoScam - he produces YouTube videos multiple times a day. On CryptoScam, Tone explains why he thinks major cryptocurrencies are scams. Targets range from DASH, Ripple, Crypto Hedge Funds, and Ethereum, and the list of guest-hosts includes Peter Todd, Riccardo Spagni, and Chris DeRose.