Billionaire investor and Shark Tank star Mark Cuban called for cryptocurrency regulation focusing on decentralized finance (challenge) and stablecoins after a token he invested in went from $ 64 to almost zero.
Cuban wants Defi and Stablecoin regulation after investing in collapsed token
Billionaire owner of the NBA Dallas Mavericks team, Mark Cuban, invested in a token that went from around $ 64 to near zero on Wednesday. Iron Finance has called the collapse of its iron-titanium token (TITAN) “the world’s first large-scale crypto banking operation.” The price of the token is $ 0.000000029585 at the time of writing.
Responding to a tweet asking him if he “got ‘hard’ or if he got tough” on the Iron Finance token, Cuban wrote: “I was hit like everyone else. The crazy part is I walked out I thought they were upping their TVL [Total Value Locked] sufficient. So bam. “
The billionaire investor has been fascinated by the challenge for some time. He wrote a blog post on June 13 extolling the potential for innovation and TITAN challenge. Some say that the Iron Finance token has become popular because of Cuba.
In the blog post, the Shark Tank star explained that he is a small liquidity provider (LP) for Quickswap. “I provide 2 different tokens (DAI / TITAN) which allow Quikswap to offer swaps between these two tokens … in exchange for providing the liquidity that TITAN and Quickswap need for their activities, I get 0.25 of the volume transaction for exchanges between these two tokens.
In his letter to Bloomberg on Thursday, Cuban opened up about his experience with TITAN. He detailed:
I read about it. I decided to give it a try. Got out. Then I came home when the TVL started to go up. As a percentage of my crypto wallet, it was small. But it was enough that I wasn’t happy with it.
“But in a larger context, it’s no different from the risks I take in angel investing,” he noted. “In any new industry, there are risks that I take in order not only to try to make money, but also to learn. Even though I got tough on it, it’s really up to me to be lazy.
Regarding regulation, he suggested, “if you’re looking for a lesson learned, the real issue is regulation,” emphasizing:
There should be regulation to define what a stablecoin is and what collateral is acceptable.
“Should we charge $ 1 in US currency for every dollar or set acceptable collateral options, like US or T-bills?” ” He continued. “To be able to call itself a stable room?” When the warranty is not 1 to 1, should the risk calculation be clearly defined for all users and approved before publication? Since stable coins probably need to be in the hundreds of millions or more to be useful, they should be saved. “
However, some people do not believe in the history of Cuba. Twitter user Paul Bryant wrote: “I don’t believe for a single nanosecond that Mark Cuban was caught off guard by the pull of the TITAN carpet. The creator was anonymous, he had no use and he was doing it at the top. “
Alex Saunders, founder of Nugget’s News, tweeted: “The incident is referred to as a ‘Cuban Missile Crisis’ after Mark Cuban published an article on TITAN it was then pumped 100x to be robust to 0.”
Meanwhile, some people have criticized Cuba for calling for regulation after claiming to have lost money in the incident. Entrepreneur Luosheng Peng tweeted, “Mark Cuban invested in crypto TITAN and lost it to almost $ 0. And after that, he calls for increased regulation of the Challenge. 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 that they were lazy in due diligence, but then blame the lack of regulation.
What do you think of Mark Cuban calling for regulation after being hit by the symbolic collapse? Let us know in the comments section below.
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