Mark Cuban, a billionaire investor, said on Wednesday that he was “hit” by a cryptocurrency token market collapse.
According to CoinGecko statistics, the IRON Titanium Token (TITAN) dropped from over $60 on June 16 to a little over $0 on Thursday morning.
Now, after losing a “little” portion of his portfolio, Cuban is pushing for tighter regulation of stablecoins, which are a subset of cryptocurrencies designed to maintain a “stable” value linked to a fiat currency.
The cryptocurrency is connected to Iron Finance, which is in charge of the IRON Stablecoin project, which seeks to eliminate price fluctuation.
— Joe Weisenthal (@TheStalwart) June 17, 2021
The news was quickly shared on Twitter. “I got hit like everyone else,” Cuban replied to one user.
I got hit like everyone else. Crazy part is I got out, thought they were increasing their TVL enough. Than Bam.
— Mark Cuban (@mcuban) June 16, 2021
He also said that he “got out” at some time, but did not explain when. Cuban is known to be connected with TITAN, having previously discussed the token on his blog.
— Mounia | IPC (@Mounia_NL) June 17, 2021
Cuban revealed that he was a liquidity provider (LP) for the QuickSwap decentralized exchange platform in a post titled “The Brilliance of Yield Farming, Liquidity Providing, and Valuing Crypto Projects” on June 13.
So in exchange for providing the Liquidity both TITAN and Quickswap need for their businesses, I get .25 of the transaction volume for swaps between these two tokens. As long as I keep making a good return, I will keep my money invested (Volatility can create mark to market losses). If not, I can immediately withdraw it (some platforms have a hold period or penalties) . Have enough LPs and the exchange is far more capital efficient than a similar traditional exchange business and i get to make some money !
Many people on Twitter have referred to the TITAN collapse as a rug-pull, a kind of exit scam in which cryptocurrency creators quit a project and walk away with their investors’ money.
Iron Finance has now released a post mortem on the events of yesterday night, claiming that it was a protocol problem rather than any malicious activity.
Whatever the reason, money was siphoned from an investment program centered on Iron Finance’s stablecoin, IRON, and TITAN’s price plummeted from $65 to $0.00000003.