The Billionaire Investors Mark Cuban said he traded DeFi token that crashed to $0 from $60 in one day. The token is known as the Iron Titanium Token, or Titan, which was part of Iron Finance, an algorithmic-stablecoin project.
Cuban tweeted that he hit like everyone else. “The crazy part is I got out, thought they were increasing their TVL enough. Than Bam.”
It’s not cleared how much money Cuban lost when he exited the trade. He told Bloomberg that Titan made up a small percentage of his crypto portfolio but enough that he “wasn’t happy” about trade. He said he was a liquidity provider for both TITAN and Quickswap.
“I provide two different tokens that enable Quick-wap to offers swaps between these two tokens. As you can see here, this pair is one of many, and you can also see that based on the 0.25 pct of volume in this swap that Quickswap pays, my return on my initial $75k investment as of this writing, is an annualized return of about 206%. But the cool thing is while I don’t get any extra rewards for this pair, I am currently the only LP in this pool, so I get 100pct of the fees. In every pool, the LPs get a percentage of the fees based on the percentage of the liquidity they provide.”
He continued “I get 0.25 of transaction volume for swaps between these two tokens. As long as I keep making a good return, I will keep my money invested. If not, I can immediately withdraw it. Have enough LPs, and the exchange is far more capital efficient than a similar traditional exchange business, and I get to make some money!”
Cuban told Bloomberg that there should be regulation to define what a stablecoin is and what collateralization is acceptable.
Cuban talked about his experience with TITAN. he detailed, “I read about it. Decided to try it. Got out. Then got back in when the TVL start to rise back up. As a percentage of my crypto portfolio, it was small, but it was enough that I wasn’t happy about it.”
He said, “Even though I got rugged on this, it’s really on me for being lazy. The thing about de fi plays like this is that it’s all about revenue and math and I was too lazy to do the math to determine what the key metrics were.”
The billionaire investor mentioned Titan in a blog post on Sunday titled “The Brilliance of Yield Farming, liquidity providing and valuing crypto projects.”