Cuban explained that he made some losses After trading the DeFi token called Titan or Iron Titanium token. The token invention that was by Iron finance was trading at $60 before it crashed to zero in less than 24 hrs. The incident happened a few days after commending decentralized finance, stating that DeFi is more capital efficient than traditional firms.
Also, about four (4) days ago, Cuban mentioned Titan in a blog post titled ‘The Brilliance of Yield Farming, Liquidity Providing, and Valuing Crypto Projects.’
Cuban explained in the post that he is a liquidity provider for Quickswap, a DEX platform. According to Cuban, he is a provider for two tokens Titan and DAI, which allows the DEX platform to offer swaps within them.
The billionaire investor explained that he was affected by the sharp collapse of the token that lost all its value in 24 hrs, just like other investors, and furthered that he got out because he thought they were raising their Total Locked Valued. He was anonymous on the amount of money he lost, although he hinted that only a lower percentage of his portfolio was affected. He, however, stated that he was not satisfied with the trade.
The sharp decrease in the token was initially assumed to be due to a rug pull, a popular scam in decentralized finance where developers abscond with funds. However, Iron Finance released a reported incident explaining that this happened due to a bank run on its protocol that started on Wednesday, 16th of June. They explained that the incident was not predicted and was a surprise to them as well.
Whatever might be the cause, it resulted in the sharp collapse of Titan from $60 to about $0, making investors with large accounts dump their holdings which ultimately led to panic selling.
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