The world of cryptocurrencies can be very dangerous and highly volatile, as the case of the Titan cryptocurrency demonstrates. It was worth $ 65 and in one day it was reduced to zero.
The funny thing is that even a deep connoisseur of the crypto space suffered losses due to investments in this token: we are talking about Mark Cuban.
In fact, the American billionaire, owner of the Maverick Dallas, passionate about cryptocurrencies, invested in Titan and was also affected by the sudden loss of value. He himself admitted it on Twitter:
What is Titan and what happened to the cryptocurrency?
Titan is the symbol of the DeFi protocol Iron Finance. This project also has a stable currency, Iron, whose value is $ 1. But linking this algorithmic stablecoin it is (or rather was) pegged to both USDC (Circle and Coinbase's stablecoin) and Titan. The more stablecoins that are minted, the higher the value of Titan.
Titan had gone up to $ 65, but based on what was posted on Twitter, a sudden surge in sales caused a panic and the sale turned into a settlement }. This also led to the loss of warranties for Iron. In this point, Titan finally collapsed and now it is worth practically zero.
With the collapse, many investors lost thousands and thousands of dollars.
In the official Telegram group, now open for messages only for administrators, there is a message that explains the final failure of the project:
“We truly regret the financial loss you have incurred, both as a result of TITAN falling to $ 0 and because IRON was unable to maintain the fixed price of $ 1.
However, there is currently nothing we can do to restore the ideal fixed price of $ 1.00 for IRON or to level the TITaN token from the ground. This has been caused by the faulty mechanism behind IRON ”.
Therefore, Iron's code was flawed and this led to the collapse of both Titan and Iron.
The project can be restarted, but it will no longer be able to depend on Iron or Titan. Therefore, the creators asked the community to stop buying Iron and withdraw your funds.
The message ends like this:
“We would like everyone to know that we are all sorry for what happened and that we are truly devastated.
We hope that we can return soon with some positive news.
We all really feel it. "
Therefore, this was not an exit scam, but a technical error which made the protocol vulnerable.
Many users are disappointed that they have lost a lot of money in just a few hours and legal action cannot be ruled out.