The world of cryptocurrencies can be very dangerous and very volatile, as evidenced by the case of the Titan crypto. It was worth $65, within a day it collapsed to zero.
The curious thing is that even a profound connoisseur of the crypto space ran into losses due to investments in this token: we are talking about Mark Cuban.
In fact, the American billionaire, owner of Maverick Dallas, with a passion for cryptocurrencies, invested in Titan, and was also affected by the sudden loss in value. He himself admitted this on Twitter:
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
What is Titan and what happened to the crypto
Titan is the token of the DeFi Iron Finance protocol. This project also has a stablecoin, Iron, whose value is $1. But the peg of this algorithmic stablecoin is (or rather was) tied to both USDC (the stablecoin of Circle and Coinbase) and Titan. The more stablecoins are minted, the higher the value of Titan rises.
Titan had climbed to $65, but based on what was posted on Twitter, a sudden flurry of selling caused a panic, and the selling turned into a sell-off. This also led to the loss of collateralization for Iron. At this point, Titan finally collapsed, and is now worth practically zero.
With the collapse, many investors lost thousands and thousands of dollars.
On the official Telegram group, now open for messages only to admins, there is a message that spells out the project’s ultimate failure:
“We are truly sorry for the financial loss you have encountered, both as a consequence of TITAN dropping to $0 and because IRON being unable to maintain the $1 price-peg.
However, currently there is nothing we can do to restore the ideal $1.00 peg-price for IRON or to level the TITAN token up from the ground. This has been caused by the flawed mechanism behind IRON”.
Hence Iron’s code was faulty and this led to the collapse of both Titan and Iron.
The project may restart, but it will no longer be able to rely on either Iron or Titan. Therefore, the creators asked the community to stop buying Iron and to withdraw their funds.
The message ends like this:
“We would like everyone to know that we all are sorry for what has happened and that we are truly devastated.
We hope that soon we can come back with some positive news.
We are all truly sorry”.
Thus, this was not an exit scam, but a technical error that made the protocol vulnerable.
Many users are disappointed that they lost a lot of money in just a few hours, and the possibility of legal action cannot be ruled out.
The post Titan, the story of the crypto that even Mark Cuban believed in appeared first on The Cryptonomist.
