The cryptocurrency depreciated in less than a day. Probably what happened is related to the flaws in the project token omics.
Billionaire Mark Cuban suffered a loss due to the collapse of the Titan token from $ 60 to $ 0 in less than a day.
The owner of the Dallas Mavericks NBA basketball club, which was one of the altcoin liquidity providers, tweeted that he suffered along with the others.
ok I need the story here
— M◎nkey R◎thschild (@MonkeyCharts) June 16, 2021
“I suffered like the others. The craziest thing is that I came out deciding that they were increasing the amount of funds under management enough. And then bam, Cuban wrote. Until he explained in more detail what happened and his losses.
Cuban wrote about the Titan token on his blog on June 13th. The billionaire revealed that he is providing liquidity for the QuickSwap decentralized exchange.
Cuban warned that he could withdraw his funds at any time and noted the high risks of this way of earning.
Titan is the token of the Iron Finance project. It was used to provide value for the IRON stablecoin. Users could deposit 25% in Titan and 75% in USDC to issue new IRONs.
Because of yesterday’s sharp pullback in the value of Titan from $ 65 to $ 60, large players began to sell their coins, which had an additional impact on their price, Fred Shebesta, founder of Finder and investor of Iron Finance , explained to CoinDesk.
After the IRON rate untied from $ 1 (IRON is a stablecoin, its price should always be approximately equal to $ 1), the system mechanism began to additionally issue Titan tokens and withdraw liquidity in order to stabilize it.
Because of this, it became possible to conduct arbitrage, and users began to sell altcoins even more actively. This led to its depreciation. Now the project offers to return to users the remaining collateral in USDC stablecoins.
Shebesta argues that the crash was not related to hacks or vulnerabilities. In his opinion, this happened due to the token omics of the project.
