alt Hacker NewsIts a weird loophole or so.
You take 1 $ from someone and give them a token, now you have money the other not. In theory you need to make sure you keep the 1$ but you want to pay people and you are greedy so you invest it and suddenly everyone is broke.
That's not a loophole: that's literally the way fractional deposit traditional banking works.
The only difference is regulations -- banks have them; things labelled crypto don't (in the US).