Billionaire Mark Cuban alleges that he got out before the Iron Finance “rug pull” occurred.
Iron Finance, a decentralized finance project batted by billionaire Mark Cuban, has crashed.
Its TITAN token went from approximately $60 to virtually zero within 24 hours.
The IRON stablecoin, partly backed by USD Coin (USDC) and TITAN, also lost its plug.
In his June 13 blog post entitled “The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects,” the Dallas Mavericks owner announced that he was a liquidity provider for TITAN on decentralized exchange QuickSwap:
I’m a small LP for QuickSwap. I provide two individual tokens (DAI/TITAN) that allow QuikSwap to offer swaps among these two tokens. As you can see here, this couple is one of many, and you can also notice that based on the 0.25 percent of volume in this swap that Quickswap pays, my return on my primary $75k investment (based on fees only) as of this reporting, is an annualized return of about 206%.
Cuban now announces that he got out before the “rug pull” occurred:
I got hit like everyone else. The crazy part is I got out; I thought they were increasing their TVL enough than Bam.
Iron Finance—which had $2.2 billion in total value locked—asked all community members to withdraw liquidity from all pools in its Twitter statement, describing the incident as a “bank run.”
It also added that the contract didn’t allow for redemptions since the TITAN price collapsed to zero.
It’s vague whether there was some smart contract instability since Iron Finance is yet to share a post mortem. It seems that there was an exploit that made the supply of TITAN balloon to 922 billion tokens, thus rendering all tokens worthless.
Many also suspect that the team behind the project might have pulled off an exit scam.
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