Billionaire investor and Shark Tank star Mark Cuban has called for cryptocurrency regulation that focuses on decentralized finance (defi) and stablecoins after a token he invested in collapsed from $ 64 to near zero.
Cuban wants defi and stablecoin regulation after investing in collapsed tokens
Billionaire owner of NBA team Dallas Mavericks, Mark Cuban, invested in a token that crashed from about $ 64 to almost zero on Wednesday. Iron Finance called the collapse of its iron-titanium token (TITAN) “the world’s first major crypto banking run”. The price of the token is $ 0.000000029585 at the time of writing.
In response to a tweet asking if he got tough or tough on Iron Finance, Cuban wrote, “I was hit like everyone else. The crazy part is that I got off thinking they were going to increase their TVL [Total Value Locked] enough. Then bam. “
Defi has fascinated the billionaire investor for a long time. On June 13th he wrote a blog post in which he drew attention to the potential of Defi-Innovation and TITAN. Some say the Iron Finance token became popular because of Cuba.
In the blog post, the Shark Tank star stated that he was a small liquidity provider (LP) for Quickswap. “I’m offering 2 different tokens (DAI / TITAN) that allow Quikswap to offer swaps between these two tokens … my return on my initial investment of $ 75,000 (based on fees only) is currently an annualized return of around 206% … In return for providing the liquidity that both TITAN and Quickswap need for their business, I get 0.25 of the transaction volume for swaps between these two tokens. “
In his letter to Bloomberg on Thursday, Cubans spoke about his experience with TITAN. He details:
I read about it. Decided to give it a try. Got out. Then got back on as the TVL begins to rise again. As a percentage of my crypto portfolio, it was small. But it was enough that I wasn’t happy about it.
“But in a larger context, it’s no different than the risks I take with fishing investments,” he noted. “In every new industry, I take risks not only to make money, but also to learn. Even if I got gruff, it’s really up to me that I’m lazy. “
Regarding regulation, he suggested, “If you’re looking for a lesson, the real question is regulatory,” he said:
There should be regulation to define what a stablecoin is and what collateral is acceptable.
“Should we charge a dollar in US currency for every dollar, or define acceptable collateral options, like US Treasuries, right?” He went on. “To be able to call yourself a stable coin? If the collateralization is not 1 to 1, does the math of the risks need to be clearly defined for all users and approved before releasing? Since stable coins will likely need to be valued in the hundreds of millions or more to be useful, they should need to be registered.
However, some people do not believe in the story of the Cuban. Twitter user Paul Bryant wrote: “I don’t think for a nanosecond that Mark Cuban was surprised by the TITAN carpet pulling. The creator was anonymous, it was of no use, and he was at its peak. “
Alex Saunders, founder of Nugget’s News, tweeted, “The incident is dubbed the ‘Cuban Crisis’ after Mark Cuban posted a post on TITAN, then pumped 100x just to be robust to 0.”
Meanwhile, some people criticized Cuban for calling for regulation after claiming he lost money in the incident. Entrepreneur Luosheng Peng tweeted, “Mark Cuban invested in crypto-TITAN and lost it to almost $ 0. And then he calls for more defi regulation. Be careful when making crypto investments beyond BTC and ETH. “David Schawel, CIO of Family Management Corporation, commented:
I find it hard when people admit they were lazy with due diligence but then blame the lack of regulation.
What do you think of Mark Cuban calling for regulation after being hit by the token collapse? Let us know in the comment section below.
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