Markets Outlook Podcast Summary

Episode: Anthony Scaramucci & The Wizard of Soho: Inside the New Age of Onchain Leverage

Date: February 20, 2026
Host: CoinDesk
Guests: Anthony Scaramucci, Joy Patak ("The Wizard of Soho")

Episode Overview

This episode explores the evolution and current state of leverage in crypto markets, focusing on the shift from opaque TradFi (traditional finance) to transparent onchain systems. Host and guests discuss risk management, transparency, market efficiency, and the integration of institutional and retail participants in the leveraged crypto landscape. The conversation also compares the safeguards and pitfalls of leverage across both ecosystems, highlighting how emerging onchain structures may continue to change the game.

Key Discussion Points & Insights

1. The New Age of Leverage in Crypto (00:38 - 01:27)

• Joy Patak introduces the central topic: the explosive growth and accessibility of leverage in crypto markets, compared to historical norms.
  • "I think we're in this new age of leverage, more so than we have ever seen in history, especially in crypto with all the new Dexes that are out." – Joy Patak [00:50]
• Emphasizes a desire to educate traders on using leverage responsibly, moving away from mere "degen" (reckless gambler) behavior into disciplined trading.

2. Institutional Perceptions of Onchain Leverage (01:27 - 02:36)

• Anthony Scaramucci contextualizes how institutions perceive these changes—contrasting progressive players with traditional skeptics.
  • "Do we have a lot of fuddy duddies and old fashioned people in the institutional community? And the short answer to that is yes." – Anthony [01:41]
  • Compares resistance to innovation with historical examples ("horse and carriage owners" vs. the automobile).
  • Predicts that visionaries in the space will "win" despite skepticism.

3. TradFi vs. Onchain Transparency (03:00 - 04:20)

• Joy discusses the radical difference: onchain transparency lets anyone view massive leverage positions in real time—unlike TradFi, where positions are often hidden.
  • "Now I can go put a position, you know, you see multi billion dollar leverage positions out. The entire world sees it. And that's part of decentralization, right?" – Joy Patak [03:34]
• Urges traders to take advantage of available onchain analytics, warning that those who don't adapt will be left behind.

4. Why Do Blowups Keep Happening Despite Transparency? (04:20 - 06:10)

• Hosts acknowledge that while transparency should theoretically reduce reckless risk-taking, leverage-fueled blowups (like the "10/10 event") keep occurring.
• Joy argues that new market participants often lack formal risk management experience.
  • "You could say in a way you're giving like a young kid a loaded gun, right?... there's a learning process in that." – Joy Patak [04:52]
  • Sees these cycles as growing pains that make the market more efficient over time, likening it to historic TradFi crashes: "Black Fridays, Black Mondays, Black Thursdays."
  • "You're just seeing that in a much more expedited way in crypto." – Joy Patak [05:56]

5. Crypto’s 24/7 Market vs. TradFi’s Limited Hours (06:10 - 07:48)

• Anthony contrasts TradFi and crypto market structures:
  • In TradFi, markets close nightly and on weekends, limiting traders’ ability to react to events.
  • "Wall Street's inclination during crashes is to slow things down. Crypto's inclination is to accelerate things." – Anthony [06:25]
  • "This is a safer market...you can hedge yourself in this market. You couldn't do that [in TradFi]." – Anthony [07:03]
  • Over weekends, bitcoin and crypto markets can actually provide hedging opportunities unavailable in TradFi.
• Joy echoes the benefit of being able to hedge and exit positions any time.
  • "...if I was on a bond desk and I had a position that I put on Friday, there's no way I can get out of it. You know, the world could be ending." – Joy Patak [08:00]
• Anthony points out that in TradFi, fear of being unable to exit leads to not taking the position at all.
  • "So you won't put the position on...because you can't get out." – Anthony [08:10]

6. Market Liquidity, Regulation, and “Winning” (08:23 - End)

• Host raises the issue that crypto is still, for now, less liquid and often more volatile on weekends.
• Anthony says that the industry needs more participants, infrastructure, and above all, regulatory clarity to improve.
  • "You have more regulatory clarity. There'll be better guidelines and...banks will be entered a space." – Anthony [08:37]
  • Paints a future where “winning” means being able to custody bitcoin at major banks and perhaps earn yield on it.
  • "We will be winning when you can custody your bitcoin at a money center bank and even possibly get yield from that bank off of your bitcoin." – Anthony [09:05]

Notable Quotes & Memorable Moments

• "You could say in a way you're giving like a young kid a loaded gun, right? You can go and put 100x with all your network with no risk management, no guardrails." – Joy Patak [04:52]
• "Wall Street's inclination during crashes is to slow things down. Crypto's inclination is to accelerate things." – Anthony [06:25]
• "Now I can go put a position, you know, you see multi billion dollar leverage positions out. The entire world sees it. And that's part of decentralization, right?" – Joy Patak [03:34]
• "We will be winning when you can custody your bitcoin at a money center bank and even possibly get yield from that bank off of your bitcoin." – Anthony [09:05]
• "If you're not part of that new world and you don't accept it and you don't utilize it...I think you're going to get left behind." – Joy Patak [03:57]

Important Timestamps

• [00:50] – Joy on the "new age of leverage"
• [01:41] – Anthony on institutional resistance
• [03:34] – Joy on transparency of onchain leverage
• [04:52] – Joy compares untrained traders with a "loaded gun"
• [06:25] – Anthony: Wall Street vs. crypto market reactions to crashes
• [07:03] – The 24/7 market’s impact on risk and hedging
• [09:05] – Anthony on the future of custodial services and “winning”

Tone & Language

The conversation is dynamic, candid, and occasionally humorous (references to “fuddy duddies”, “degens”, and Charlie Sheen’s “winning”). Both guests leverage their deep expertise but address the audience in accessible terms, highlighting both promise and pitfalls of the new financial landscape.

This summary captures the episode’s core discussions and insights, providing an engaging overview for listeners seeking to understand the transformative role of onchain leverage in today's crypto markets.