3 ms·
How did they have a marketcap of $250M as a stablecoin when they had 1000x less in reserves?
by graeme 5y ago
How did they have a marketcap of $250M as a stablecoin when they had 1000x less in reserves?
- chrisco255 5y agoSounds like a statistical fluke to me (or some kind of market cap manipulation scheme). This token was not that liquid and not that widespread at all. I never heard of this token until today and I spend several hours a day on crypto.
- spiralx 5y agoBecause market cap is nonsense, if I create FooCoin with 1,000,000 tokens and sell one for $250, it has a market cap of $250M despite only ever having $250 in real money involved.
- mshumi 5y agoTake this line of reasoning further and you reveal the problem with crypto to crypto taxation.
- graeme 5y agoWhy? When you sell you make a profit or loss, same as any other asset.
- graeme 5y agoI know market cap isn’t sensible for coins with varying values, but for stablecoins equal to $1 market cap is supposed to be the number of tokens in circulation and therefore should be close to reserves. Number of reserves is its own issue but only having 0.1% reserves is miniscule.
- incrudible 5y agoThat was the exploit. 248 million tokens were minted on $250k collateral.