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Somebody has deep pockets to fix such a blunder. Where is this money coming from? Who had enough ETH lying around to refill the bridge? They certainly didn't
by bhaak 5y ago
Somebody has deep pockets to fix such a blunder.
Where is this money coming from?
Who had enough ETH lying around to refill the bridge? They certainly didn't just buy it on the open market, that would have moved the SOLETH ratio.
- tylersmith 5y agoWormhole is owned by a trading firm, Jump, who is providing the eth to restore the bridge liquidity.
- beaned 5y agoJump itself just had $320M laying around?
- kccqzy 5y agoThat's quite possible, judging by the huge bonuses a few friends working there got as a SWE.
- e4e78a06 5y agoJane Street made $8bn in 2020 [1]. $320M is probably peanuts in exchange for maintaining the stability of a market they dominate in capturing arbitrage money on. [1]: https://www.bloomberg.com/news/articles/2021-06-18/jane-street-and-drw-traders-made-billions-in-pandemic-markets https://www.bloomberg.com/news/articles/2021-06-18/jane-stre...
- idohft 5y agoJump is very profitable.
- nexuist 5y agoJump Trading Group isn't some rando crypto org, it's a legit hedge fund established in 1999. Supposedly it has at minimum $150M AUM[1] but because it's a private company nobody actually knows the real amount. We can predict that they probably have a few billion in cash lying around if they've been successfully trading for over 20 years. Jump Crypto, the group that bailed out Wormhole, is their crypto trading division. [1] https://wallmine.com/fund/3mg/jump-trading-llc https://wallmine.com/fund/3mg/jump-trading-llc
- joezydeco 5y agoJump is a black hole. I had a friend go there 20 years ago and haven't heard from him since. But he's got a lovely mansion on the North Shore.
- chrisco255 5y ago$150M is 15% of a billion. Why would they have a few billion in cash if they only have $150M? Numbers seem off.
- nexuist 5y agoThe numbers are off because it is a private company. They have $150M in disclosed assets, the true number may be magnitudes higher and probably is if the company can cough up $320M on a dime. Unless you have insider trading information there is no way to know Jump's real AUM.
- x86_64Ubuntu 5y agoAnd $300M available for use within 24 hours. I'm sure Google, Netflix and Walmart all have $300M+ they wouldn't care if it went missing. But all the paper and presentations needed to touch a tenth of that sum would take months. But this guys had it on hand as if they were quarters at an arcade.
- Yizahi 5y agoEasy - print 300 millions of any one of the half a hundred existing stabletokens, then exchange them for ethereum tokens. Or if they were of the founders of some token, they can spend part of their premine for Eth. Possibilities are endless if the market is "free" :)
- dboreham 5y agoThat's not actually a thing though. There are people/entities with large ETH holdings who could well be motivated to foot this loss, but they can't just magic (real) money out of thin air.
- nikanj 5y agoBitfinex does not agree
- oneoff786 5y agoSell them to dumbasses for real dollars
- grey-area 5y agoThat is actually a thing. https://www.coindesk.com/markets/2021/07/16/tether-hasnt-printed-new-usdt-in-weeks-3-possible-explanations/ https://www.coindesk.com/markets/2021/07/16/tether-hasnt-pri... They’re not playing with real money here.
- GrumpyNl 5y agoIts not real money, nobody did put 320M dollars at the table.
- poontang1 5y agoTell me you don't understand stablecoins without telling me you don't understand stablecoins.
- Hjfrf 5y agoBitfinex already did it once that we know of. It's not too absurd.
- PaywallBuster 5y agoThe parent company is Jump Crypto - crypto HFT It's parent company is huge HFT trading company too - Jump Trading https://www.coindesk.com/business/2022/02/03/jump-trading-backstops-wormholes-320m-exploit-loss-sources/ https://www.coindesk.com/business/2022/02/03/jump-trading-ba... https://en.wikipedia.org/wiki/Jump_Trading https://en.wikipedia.org/wiki/Jump_Trading
- TimJRobinson 5y agoEthereum daily trading volume is $21B, the 120k ETH purchase (about $320M) is 1.5% of daily volume, so it wouldn't move markets much at all. They just market bought ETH, nothing to do with ETH/SOL ratio.
- bhaak 5y agoI didn't explain my reasoning there. Most of SOL is in the hands of VC investors and hasn't hit the free market. If you don't have any other liquid asset, it would make sense to go the route of selling your SOL for ETH. But it looks like this was not necessary and the ETH to fill up the contract again was either at hand or sold over the counter. The $21B is the trading volume for all pairs. Most ETH pairs are BTC, fiat currencies or stablecoins. If somebody had sold SOL to get ETH that would have been noticeable.