- IRON Finance’s TITAN token has crashed from $64 to $0 following a “bank run”
- It is suspected that huge sells followed by whales taking advantage of an arbitrage opportunity were to blame
- TITAN holder Mark Cuban was also hit by the sudden crash
IRON Finance, a Mark Cuban-backed project that calls itself a multi-chain partial-collateralized stablecoin, has experienced what it calls a “bank run” which has seen the value of its TITAN token crash from $64 to $0 in less than 12 hours. The crash, which has been initially put down to a selling cascade followed by whales exploiting an arbitrage opportunity, seems to have completely killed this aspect of the IRON Finance platform, taking Cuban’s investment with it.
TITAN’s Unsustainable Rise
TITAN token had been on an unsustainably huge run this month, mooning from $1 to $64 in the space of two weeks:
Wow this is hilarious 😂
Perfectly executed rug pull on $TITAN occurred today $60 to $2 in a matter of hours
They even got @mcuban who is a billionaire and has all the resources for research
— No 🔑 No 🧀 (@bitcoinzay) June 17, 2021
That run lasted until yesterday’s incident, with early theories suggesting the following series of events may have been to blame:
Whales sold at $64, triggering an avalanche of sales from smaller investors amounting to some $200,000
The speed of the drop resulted in a temporary arbitrage opportunity requiring the minting of new TITAN tokens, which whales took full advantage of en masse.
This resulted in the market being flooded with newly minted TITAN tokens and the bottom falling out of the market.
As the value of the token was crashing, IRON Finance posted a tweet asking holders to “please withdraw liquidity from all pools” and promised a post-mortem “as soon as we have a better understanding of this bank run.”
Cuban’s Holding Goes Up In Smoke
Mark Cuban, who held an unstated amount of TITAN tokens, tweeted that was among the victims, although he managed to get out before the real carnage hit:
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
TITAN token holders will be impatiently awaiting an explanation for the crash, although it won’t help them in getting their money back.