Not even a billionaire investing wiz can escape the painful pratfalls of altcoin investing. Today, we learned that Mark Cuban is among the investors recently punished by the rapid drop in IRON Titanium Token (CCC:TITAN-USD) prices yesterday. The TITAN crypto story is one of the most unfortunate altcoin plunges in recent years.
So what is the TITAN crypto, how does Mark Cuban fit into this, and what exactly is causing TITAN to tank to zero tokens and nearly $0 value?
Here’s what you need to know about the unprecedented situation.
TITAN Crypto: What to Know About Cuban and Iron Finance
- Iron Finance is the company behind the TITAN token. The main goal of the outfit is to provide a $1-pegged stablecoin, known as IRON (CCC:IRON-USD), for DeFi applications.
- Iron Finance’s TITAN token operates on Polygon (CCC:MATIC-USD), a blockchain network. Cuban is one of the network’s most vocal celebrity supporters.
- IRON’s stable value, according to the Iron website, is backed by a variety of different collaterals, including USDC (CCC:USDC-USD), the stablecoin of Coinbase (NASDAQ:COIN). TITAN is the in-house collateral token for IRON.
- Developers distribute TITAN to liquidity providers to stake in various liquidity pools. This staking allows liquidity providers to yield profits off of transactions, and ensure that there is liquidity for other investors looking to buy TITAN.
- Mark Cuban was one of these liquidity providers, staking his TITAN on the exchange QuickSwap. Essentially, Cuban provides TITAN and DAI (CCC:DAI-USD) — another stablecoin — on the platform. When somebody buys TITAN with DAI, Cuban nets 100% of the transaction profits.
- The tokenomics behind this project are obviously quite robust. However, having many layers and players just seems to complicate things.
- The plunge took place after TITAN reached $65, before retreating to $60.
- Whales — large holders of TITAN — saw this price gapping as enough of a reason to cash out. As soon as whales started off-loading their TITAN, others began to panic sell.
- The domino effect of this sale is profound; excess TITAN tokens began hitting the market, which caused TITAN prices to drop off. Panic sales continued, excess tokens poured in, and prices tanked from $60 to where they stand now, at near-zero levels. The IRON stablecoin is also being thrown far from its peg, with values crashing from $1 to 69 cents.
- It should be made clear that this does not seem to be a rug-pull scam. This is, as Iron Finance investor Fred Schebesta is calling it, “the worst thing that could possibly happen considering their tokenomics.”
- Cuban is taking to Twitter today to address some of the many questions about the fall of TITAN. He denies that he was the whale in question, saying he “got hit like everybody else.”
- All together, the TITAN crypto has lost over $1.75 billion in total value locked on Polygon. The company is planning on somehow reimbursing holders.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.