The 24-year-old investor, who became a crypto millionaire when he sold his fund this year, explains why he bet big on the popular altcoin Avalanhce. Rahul Rai, 24, became a millionaire in May after BlockTower Capital bought the fund he co-founded. He believes Avalanche is the Ethereum network’s closest competitor and will “steal more liquidity” than the big Blockchain. Details on Kriptokoin.com.
Which altcoin project did he point to?
Competition between different networks is heating up as cryptocurrencies become more common and more blockchain-based applications appear every day. The Ethereum network has long been the busiest, but 24-year-old Rahul Rai, who became a millionaire by selling a crypto fund he helped set up, believes the Avalanche blockchain has the potential to take that number one spot.
Rai grew up in India and co-founded crypto hedge fund Gamma Point Capital with Eash Aggarwal and Sanat Rao in 2017 while working as an analyst for Morgan Stanley. Backed by billionaire Marc Lasry, among others, BlockTower Capital acquired the company for $35 million in May this year, based on the company’s strategy, technology stack, and the various funds it offers. He is currently the full-time managing partner of the BlockTower Gamma Point Market Neutral Fund.
Rai currently likes Avalanche, a middleware protocol that can host smart contracts like Ethereum. The network’s native AVAX token is one of the best performing cryptocurrencies this year. “Avalanche has a really good chance of getting a lot of liquidity and transactions from Ethereum,” Rai told Insider in an interview. “These ecosystems have really attracted this large (developers) and now more importantly, community of traders and users,” Rai said.
Features of Avalanche
Avalanche allows users to build private blockchains and decentralized, peer-to-peer applications. Another incentive is liquidity mining tools running Avalanche, which reward early adopters with a governance token or the blockchain’s native cryptocurrency, Rai said. In August, popular altcoin Avalanche allocated a $15 million liquidity mining incentive that will run for three months. “This makes it extremely attractive for early users to adopt the protocol and adopt the chain,” said Rai.
He suggested having avax in the short term because of the yielding-farming opportunities offered by the underlying network. Yield farmers lock their tokens for a fee. They can then profit from each trade, but incur price risk if the value of the locked tokens rises or falls. Rai believes that the wealth he has amassed thus far demonstrates the magnitude and power of growth in the cryptocurrency world. Rai says:
My success so far is a validation of the potential of crypto and I think being in the hypergrowth industry has made it much easier to build and scale quickly. I feel incredibly lucky and grateful. I certainly didn’t expect to be a millionaire at my age. When you have the right team, you can actually create these “1+1+1 = 10” situations that lead to rapid growth and innovation.
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