Billionaire investor Mark Cuban appears to have gotten burned like everyone else as the price of a DeFi token crashed to zero earlier today.
What Happened: DeFi project Iron Finance’s algorithmic stablecoin Iron Titanium token TITAN/USD crashed by 100% from Wednesday’s high of $65 to $0.000005717 at the time of writing.
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
Cuban stated on Twitter that he too was affected by the collapse in TITAN’s price but also indicated that he managed to get out before the major crash took place after gauging that the token was overvalued.
Why It Matters: Some believe that Cuban’s interest in the project was what caused its value to inflate to the extent that it did. Users discovered Cuban’s DeFi wallet after going through a blog post he wrote where he states he is a liquidity provider of TITAN/Dai on the Polygon network MATIC/USD.
According to Rekt News, the incident began when TITAN became overpriced, perhaps due to users purchasing the token in order to farm TITAN pairs at ~50,000% APY.
“TITAN’s price went to $65 and then pulled back to $60. This caused whales to start selling,” Fred Schebesta, founder of Finder.com.au and Iron Finance investor, told CoinDesk. “That then led to a big de-pegging of [IRON].”
Soon, large holders began to sell their TITAN tokens, flooding the market and leading to a cascading selloff.
Iron Finance, which once had over $2 billion in total value locked (TVL) on Polygon, now has under $240 million according to the protocol’s dashboard.
The project has responded by offering USDC redemptions, but users will first need to wait 12 hours for a timelock feature to pass.
“Please don't buy TITAN or IRON,” warned the project. “There is no hacks, no exploits or rug-pullings. We will post a post-mortem article with a detailed explanation in the next hours.”
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