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Famous Shark Tank billionaire Mark Cuban “came out” at one point, while TITAN tokens went from US $ 65 to zero.
A crypto token known as TITAN exploded and erupted within the same 24 hours, with its value ultimately flat at zero in what has been described as a vortex of money.
Mark Cuban, the famous American billionaire, was reportedly hit by the crypto collapse, but said on Twitter that he was out. The extreme volatility event came just days after Cuban revealed in a blog post that he was a liquidity provider for the system.
‘Tokenomics’ has been blamed for the implosion of TITAN which, ironically, was believed to be tied to another crypto token, called IRON, designed to be what crypto heads call a stablecoin.
To keep it simple, a stablecoin is intended to be a non-volatile crypto asset. They usually do this through an external attachment, or anchor, to some other representation of value (like a dollar or maybe a unit of gold).
IRON was 75% pegged to USDC, a US dollar pegged stablecoin created by the crypto exchange Coinbase, but the remaining 25% was pegged to TITAN, which was to be used as a collateral unit.
Obviously, the problem was that as more and more iron coins were minted due to increasing popularity, the price of TITAN increased.
The TITAN price peaked at US $ 65 per coin as late as Wednesday.
Unfortunately for anyone sticking with TITAN parts, the flywheel that caused it to soar has also worked backwards.
The sale by speculators who had cashed in the TITAN’s price hike made the peg unstable, with the panic selling sending a flood of tokens into the open market to further exacerbate the collapse in value.
It got even more complicated, according to a report from Coindesk, which explained that an arbitrage trade exploiting the difference between the relative prices of FER and TITAN resulted in the sale of more TITAN coins.
On social media, some netizens have speculated that the TITAN collapse was a scam which is a type of scam where crypto systems are shut down, much like a more traditional system of exchange for money. ‘pump and discharge actions.
Fred Schebesta, an IRON investor cited by Coindesk, called it a crypto money vortex.
There was no carpet pull or exploits. What happened was just the worst thing that could happen given their tokenomics, Schebesta.
The IRON stablecoin was attached to the Polygon blockchain platform. At one point, a value of US $ 2 billion was stuck in smart contracts (a type of contract on a blockchain) linked to IRON and TITAN.
Mark Cuban, famous one of the investors in the Shark Tank TV show, owns the Dallas Mavericks NBA team and has been an upbeat supporter of cryptocurrency, decentralized finance, and blockchain technology.
As late as Tuesday, in his own blog, he wrote that banks should be afraid as decentralized finance (or DeFi) systems grow to challenge traditional financial institutions and operations.
Cuban has already spoken specifically of a DeFi platform called Aave.
Everything is controlled by smart contracts. Its fully automated. You don’t need to get approval from anyone and it takes a few minutes to take out a loan, Cuban said earlier this year.
Aave is described as a decentralized non-custodial liquidity market protocol which in practical terms means that it allows users to lend or borrow funds through a decentralized pool of crypto tokens.
In this case, Aave uses Ethereum, allowing users to deposit tokens in exchange for passive token income in the same way that a lender would receive interest while borrowers would receive with or without collateral.
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