Goldman MD Quits After Making Fortune Off Dogecoin
In a story that captures the impact that cryptocurrencies – created by Satoshi Nakamoto to “disrupt” the practice of central banking – have had on the world of finance, a managing director at Goldman Sachs has reportedly quit the bank after making a fortune off Dogecoin.
The Guardian and the website efinancialcareers reported that Aziz McMahon, a former managing director and head of emerging market sales at Goldman Sachs, resigned from the investment bank – and gave up one of the most prestigious jobs in the world of finance – after earning the windfall of a lifetime off a cryptocurrency created as a joke back in 2013, and which has seen a massive runup so far this year. The exact size of McMahon’s alleged crypto-fortune wasn’t disclosed, other than the fact that he made “millions of dollars”. The cryptocurrency is up more than 1,00% in 2021, though it has fallen more than 30% since the start of the week, and was recently trading at 47 cents.
The Irish Times later identified McMahon as a native of Ireland and a Trinity College Dublin graduate. The banker is in his 40s, and worked at Goldman for the last 14 years. It’s believed McMahon traded crypto solely for his own account, and wasn’t involved in the business at the firm, which recently revived plans to launch a crypto trading desk.
Though it’s not clear when McMahon first invested in Doge, or what he plans to do with his winnings, though efinancialcareers reported that he was possibly considering starting a hedge fund.
Here’s more from them:
Neither Goldman Sachs nor McMahon immediately responded to a request to comment on his exit, but colleagues confirmed his departure. It’s thought that he may be starting a hedge fund. His move comes after Elon Musk said he plans a Dogecoin-funded space mission next year, and while banks are slowly getting their crypto credentials on the table. Goldman Sachs executed its first bitcoin derivative trades last week and UBS is reportedly in the early stages of making digital currency investments available to clients.
McMahon isn’t alone in heeding the call of crypto. Luyi Zhang, a former senior quantitative analyst at Bank of America in New York has just joined Coinbase as a senior software engineer. Jesse Bornstein, who launched Nomura’s trade finance business in New York recently quit to become VP of institutional sales at Stakehound, a company that issues tokens allowing owners access to decentralized finance.
Coinciding with the worst selloff in doge since the start of its remarkable runup this year, news of the executive’s decision to resign with his “f**k you” crypto money quickly captivated the attention of social media users, while many seized the opportunity to try and pump. Doge is down more than 30% so far this week.
Goldman has long been admired for its ability to do two things: remain one step ahead of the market, while distributing much of the wealth it generates inside to employees. Here’s an example of one employee doing both.
Wed, 05/12/2021 – 17:20