From Math Prodigy to Crypto Assets Trader: The Legendary Journey of Kevin Zhou, Founder of Galois Capital

Kevin Zhou is a well-known trader and investor in the Crypto Assets field. Since entering the Bitcoin market in 2011, his personal account has achieved an annual compound growth rate of about 100%, while the Galois Capital hedge fund he founded has realized a 35% annual compound growth rate over five years, with assets reaching $250 million. This fund, which focuses on market-neutral strategies, has only experienced losses in four months, and its maximum monthly drawdown does not exceed 1%( excluding the FTX bankruptcy incident).

Difficult Childhood and Mathematical Talent

Kevin Zhou was born in Shanghai and immigrated to the United States with his parents at the age of three. His father pursued a PhD in mathematics at the University of Hawaii, and his mother studied for a master's in electrical engineering, making the family's financial situation quite difficult. Kevin was taught from a young age to cherish every penny and often stayed home alone to cook for himself.

Kevin has a remarkable talent for mathematics. At the age of 11, he attended calculus classes at a community college with his father. He took the talent search test at Johns Hopkins University, ranking first in Hawaii and approximately within the top 120 in the United States.

In middle school, Kevin became addicted to video games and enjoyed trading game cards on the playground. He particularly liked trading runes in the in-game market of "Diablo II" and found the game's economic system more interesting than simply leveling up.

College Life and Career Start

Kevin majored in mathematics and economics at university, and after graduating in 2009, he continued to pursue a master's degree in economics. He then went to Wall Street to work as a backend quantitative analyst at a rating agency.

In 2011, Kevin was introduced to Crypto Assets and began investing when the price of Bitcoin was around $11. In 2013, he joined the YC-incubated exchange Buttercoin. Although Buttercoin ultimately failed, this experience gave Kevin a deep understanding of the Crypto Assets industry.

joined Kraken and founded Galois Capital

After Buttercoin closed, Kevin joined Kraken and established the over-the-counter (OTC) desk. After working at Kraken for two years, Kevin founded the market-neutral strategy hedge fund Galois Capital in 2017.

Galois Capital initially made money primarily through OTC, later venturing into basis trading and the DeFi space. During the YFI token mining frenzy, Galois Capital became one of the largest yield farmers.

Ethereum Merge and Luna Incident

Kevin conducted an in-depth analysis of Ethereum's transition from PoW to PoS merge. He suggested trading by buying tokens and shorting perpetual contracts, believing that the tokens may split into two, while the perpetual contracts are more likely to track the dominant chain.

During the Luna crash event, Galois Capital made a profit of 15 million dollars. Kevin discovered the problems with the Luna system early on and decisively shorted at a critical moment.

Market Changes and Future Outlook

Kevin believes that trading in Crypto Assets is becoming increasingly difficult. There are only occasional brief opportunities during bear markets. He emphasizes that the key to success lies in maintaining a contrarian mindset about the market and identifying opportunities where he is right and others are wrong.

Although Kevin is a staunch believer in Bitcoin, he takes a cautious attitude towards altcoins. He believes that projects capable of surviving multiple cycles are rare, and only Bitcoin possesses uniqueness.

Kevin stated that the "final state" of Bitcoin - how network security will be maintained after block rewards end - is a significant risk that must be addressed. He tends to believe that a fork version with "tail emissions" will eventually emerge.

Personal Reflection

Reflecting on his experiences in the crypto industry, Kevin stated that this journey has had both achievements and regrets. He believes his earnings are likely between the "40th and 60th percentiles."

Kevin suggests that young people should be confident and start their own businesses early. He emphasizes that "being the first" is much easier than "being the smartest." In the current market environment, it is becoming increasingly difficult to compete with top players.

Finally, Kevin encourages everyone to have confidence while maintaining skepticism and being ready to overturn their own conclusions. He believes that "shoot first, ask questions later" is the key to success.