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Everyone is fully aware of the volatility that exists in the crypto markets. Rallies that drive up prices and collapses that wipe out portfolios are not uncommon. That is exactly what occurred with TITAN. TITAN is the token that is used to back the partially collateralized stablecoin IRON. IRON is backed by 25% TITAN and the remaining 75% by the USDC. However, in less than 16 hours, the token’s value plummeted to $$0.000007869 at press time.
The token’s price was skyrocketing 36 hours ago. On June 11, TITAN was worth close to $10, and in less than 6 days, the currency reached a high of $65. This 84 percent increase was caused by the excitement around the coin’s mining process, as well as the coin’s potential worth.
Adding to the hype was the famous shark and crypto enthusiast Mark Cuban who talked about his involvement with TITAN. In his blog on June 13, he mentioned that he was a small LP for QuickSwap (a token DEX). He added that along with TITAN he also provides liquidity for DAI that enables QuikSwap to offer swaps between these two tokens. Naturally, fanboys saw this as the “next big thing” and rushed to pump the token.
All of their aspirations came tumbling down on June 16, when the token began to experience some selling, causing the price to drop close to $38. During the first sell-off, which some saw as a correction, the token recovered and returned to $50. Following this, the coin went into free fall and continued to fall until it reached a dead end.
Soon after the crash many people began accusing and questioning IRON Finance and blamed them for rugging the investors. Some even accused Mark Cuban of being an accomplice to this alleged rugging, to which he responded,
“I got hit like everyone else. Crazy part is I got out, thought they were increasing their TVL enough. Than [sic] Bam.”
The truth, though, is a little less of a conspiracy criminal thriller and a little more reasonable. Analysts blamed investors for behaving emotionally rather than rationally. Soon after Mark’s writing, the currency had a massive surge in value before collapsing. The initial sell-off was accompanied by whales dumping about $200K, causing the market to panic sell. Following this, IRON lost its peg, whales began flooding the market with newly produced TITAN, and the token proceeded to decline indefinitely until it vanished.
At press time, IRON Finance was yet to provide a post-mortem report of what they consider a “bank run”. They also asked everyone to withdraw liquidity from all pools. IRON HODLers can resume redeeming the stablecoin for USDC at 5 PM UTC.
Until then, some heartbroken investors continue to provide great tips,