Billionaire Mark Cuban has called for stablecoins to be more closely regulated after getting caught up in the spectacular collapse of a DeFi token called Titanium.
TITAN's sudden fall, which took place in a 24-hour period, makes Bitcoin's moves look tame by comparison. After reaching an all-time high of $52.46 on Wednesday, it has fallen as low as $0.00000006… practically losing 100% of its value in the process.
This particular digital asset was an algorithmic stablecoin. Typically, these cryptocurrencies work by increasing their supply whenever prices rise, and buying them back when prices fall. Unfortunately, this isn't the first algorithmic stablecoin to experience a grisly end.
It's a rather embarrassing sequence of events for Cuban, the owner of the Dallas Mavericks who is better known in the crypto community for being an ardent supporter of Dogecoin. As recently as Sunday, he was singing TITAN's praises on his blog.
After Bloomberg wrote an article about TITAN's demise, the entrepreneur wrote an email to the media outlet to share his side of the story. He wrote:
"In a larger context it is no different than the risks I take [in] angel investing. In any new industry, there are risks I take on with the goal of not just trying to make money but also to learn. Even though I got rugged on this, it's really on me for being lazy."
Nonetheless, Cuban is now calling for regulations that clearly define what a stablecoin is, and how they should be collateralized.
For its part, Iron Finance, which was behind TITAN, says it has "just experienced the world's first large-scale crypto bank run."