The Wolf Of All Streets Paxos Accidentally Mints 300 TRILLION In Stablecoins | CryptoTownHall
Oct 16, 2025
In this engaging discussion, Mike McGlone, a senior market analyst with insights on gold and volatility, teams up with Kelly, an expert in DeFi and on-chain mechanics. They dive into the shocking Paxos mishap of accidentally minting 300 trillion stablecoins, examining the trust issues and regulatory implications that arise. The conversation also touches on the DOJ's seizure of Bitcoin from scams, shifting macro trends between gold and Bitcoin, and the evolving narratives around crypto as an investment, all while keeping a keen eye on market dynamics and cautioning against speculative risks.
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Paxos Fat-Fingered A Massive Mint
- Paxos accidentally minted what would have been $300 trillion in stablecoins and burned it immediately after identifying the error.
- Scott and panel treated it as a fat-finger mistake that highlights systemic trust and control issues in tokenized real-world assets.
Tokenized Real-World Assets Rely On Trust
- The Paxos error exposes that tokenized real-world assets remain 'trust me' systems tied to off-chain bookkeeping.
- Such failures weaken regulatory and public confidence in supposedly one-for-one backed stablecoins.
Fiat Mistakes Mirror Crypto Errors
- Dan Clark compared the Paxos mistake to a fiat-world mis-entry where a German woman accidentally transferred billions.
- He emphasized Paxos's quick fix but said such errors still look bad for the industry.
