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Comment by Yizahi | Hacker News Reader

Easy - 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" :)

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That'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.

Bitfinex does not agree

Sell them to dumbasses for real dollars

That is actually a thing.

https://www.coindesk.com/markets/2021/07/16/tether-hasnt-pri...

They’re not playing with real money here.

Its not real money, nobody did put 320M dollars at the table.

Tell me you don't understand stablecoins without telling me you don't understand stablecoins.

Bitfinex already did it once that we know of.

It's not too absurd.

Bitfinex isn't the party in question here. Unless Jump has their own coin they can mint out of thin air and convince people to buy for Ether, or are able to convince any of the other main tokens to mint for them, this scenario isn't even plausible.

Apparently they do, it's called Solana, and the hacker did the minting for them :)

See the top comment.

None of this is remotely accurate and nobody minted Solana. They minted tokens that no longer exist ON Solana. $320 was spent in ETH - a plenty liquid asset that they have that much less of and that lowers the total value of their holdings by that much.

I'm not sure about the state of things in 2017, but in 2022 Coinbase will convert your USDT into USD and let you withdraw it. I have a lot of trouble believing the likes of Coinbase have either not done serious diligence on Tether or are willing to perpetuate what would probably be the largest ponzi scheme in world history by a long shot. Coinbase is a public company with executives that are not eager to go to prison, not a bunch of anons with frog avatars.

This isn't Tiktok.

The folks behind Tether, the pre-eminent stablecoin, are accused of doing exactly this manufacturing of supposedly stable coins out of thin air.

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