Speculation with cryptocurrencies can be risky, billionaire Mark Cuban now knows that. The wealthy American owner of NBA team Dallas Mavericks invested in the cryptocurrency Titan. It was still worth 64 dollars on Wednesday. A day later, however, the value had dropped to $0.000000024.
The American entrepreneur-investor is known as a big crypto fan. How much money the billionaire lost with his investment in Titan remains unclear. He told Bloomberg that in percentage terms it wasn’t a big part of his portfolio, but that it was enough to be “not happy” about it.
Titan is a token of Iron Finance, a protocol for decentralized finance (Defi). This is a segment within the crypto world that deals with the provision of decentralized financial services on blockchains or digital logs.
Iron Finance’s project focused on stable coins, which are digital assets designed to track the value of coins such as the dollar or the euro.
Last Thursday, however, the price of the ‘Iron Titanium Token’ suddenly dropped from about 64 dollars to 0 dollars, a decrease of almost 100%.
So-called ‘whales’, players who own large amounts of a crypto coin, are said to have suddenly started dumping the token. The value then dropped to about 30 dollars and panic selling may have arisen. The price then fell sharply further towards 0 dollar.
Cuban blamed himself for his terrible investment. He would have been too lazy and said he did not do enough research into crypto before investing money in it.