Mark Cuban calls for more regulation after TITAN, a crypto token he endorsed in a recent blog post, came crashing and essentially lost 100% of its value in several hours.
TITAN Loses 100% of Its Value in Hours
The rich can also get taken in by crypto scams. This became evident after billionaire and investor Mark Cuban lost a portion of his crypto portfolio as a stablecoin by the name of TITAN saw nearly 100% of its value wiped in a matter of hours.
The event didn’t upset Cuban as much as it incentivized him to call for more regulation on stablecoins, the type of cryptocurrencies that are deemed secure owing to their inherent value being pegged to that of a central bank currency, such as the US dollar.
Stablecoins are part of decentralized finance, a new blockchain-powered financial system that is slowly trying to impose its will on the mainstream. However, without proper consumer protection laws, this may take a while.
TITAN’s collapse has been attributed to a “rug pull” move which essentially allows developers to round up owners’ funds and spirit away with the money. The fallout is a collapse of an entire DeFi ecosystem that was once considered safe and, for all intents and purposes, reliable.
In an interview with Decrypt, Cuban was concise. “Live and learn,” the billionaire said. Iron Finance, the blanket project ecosystem under which roof TITAN was operating, published a confirmation of events and argued that what happened was truly “a bank run.”
Fool Me Once, Shame on You
In fact, it was the world’s first large-scape crypto bank run, the statement by the company added. TITAN, which went from $65 to $0.00000003 last night, has not had an immediate impact on the Iron token, which is Iron Finance’s proprietary digital asset. At the time of writing, the currency is trading at $0.74.
Cuban kept his poise, arguing that every industry invites risk and that he was there to learn, not just try and make money. “There should be regulation to define what a stable coin is and what collateralization is acceptable,” Cuban noted.
This event comes in the wake of a blog post-Cuban published in which he discussed TITAN and Iron Finance and the project’s essential benefits to stakeholders. The decision to invest in TITAN has evidently backfired, but as Cuban noted, taking away a lesson and moving forward is what matters here.
Regulation in stablecoins may indeed belong overdue as these assets are pegged to a real-world currency and can be treated with a little more regulatory scrutiny.