Mark Cuban claims he lost money trading Titan, a DeFi token that plunged from $60 to zero in a single day.
Mark Cuban, a millionaire investor, claims he traded a DeFi coin that crashed to zero in a single day.
The token was part of Iron Finance, an algorithmic-stablecoin initiative, and was known as the Iron Titanium Token, or Titan.
Titan fell to virtually zero on Thursday as major whale accounts unloaded their holdings, causing panic selling, according to Rekt News.
Cuban said he was hit by the token's dramatic decline on Twitter. ""I was hit, just like everyone else," he explained."The absurd thing is I just thought they had increased their TVL sufficiently. After that, Bam."
It's unclear how much money Cuban lost or when he got out of the business. Titan made up a modest percentage of his crypto holdings, but it was enough to make him "unhappy," he told Bloomberg News.
In a blog article titled "The Brilliance of Yield Farming, Liquidity Providing, and Valuing Crypto Projects," the billionaire investor addressed Titan.
He claimed himself as a liquidity provider for QuickSwap, a decentralised exchange platform, in the post:
"I give two separate DAI/TITAN tokens that Quikswap can utilise to swap between the two. This pair is one of several, as you can see, and you can also see that based on the. With Quickswap paying 25% of volume in this swap, my annualised return on my initial $75k investment (based on fees only) as of this writing is around 206 percent (based on fees earned in the last 24 hours).Depending on the activity, this return % will change all over the map.) While I don't get any additional benefits for this pair (are you reading this, Titan and Quickswap? ), I am now the only LP in this pool, so I get 100% of the fees. Each pool's LPs receive a percentage of the fees based on the amount of liquidity they provide.
"As a result, I receive 25 percent of the transaction volume for swaps between these two tokens in exchange for providing the liquidity that TITAN and Quickswap require for their respective businesses. I'll keep my money invested as long as I'm getting a good return (Volatility can create mark to market losses). If it isn't, I can withdraw it right away (some platforms have a hold period or penalties). If there are enough LPs, the exchange will be significantly more capital efficient than a similar traditional exchange business, and I'll be able to profit."
Cuban stated that regulations should be put in place to define what a stablecoin is and what collateralization is acceptable.
"I'm to blame for my laziness, even if I've worked hard to achieve it. The issue about science fiction is that it's all about the money and arithmetic, and I was too lazy to do the math to figure out what the essential KPIs were" In an email, Cuban stated.
"However, the real issue is that of regulation, if you are looking for a takeaway. Every new l1 and l2 will see a slew of players attempting to build steady coinage. For the winners, it can be a profitable fee and arb business."
Insider reached out to Cuban for comment, but he did not answer right away.