Billionaire investor Mark Cuban has stated it was “my mistake” for not doing his homework on the Titan cryptocurrency, which plummeted from $60 to $0 in less than a day.
Crypto investment will always have a risk involved and altcoins are not exempted. The owner of the Dallas Mavericks NBA team and Shark Tank host twitted that he took a “hit” on Titan and mentioned that he took full accountability for the loss.
The digital token lost almost all of its value Wednesday of last week.
Cuban has not unveiled the value he suffered from the crash but informed Bloomberg that his capital “wasn’t so big that I felt the need to have to dot every I and cross every T.“
He has requested more regulation to “define what a stable coin is.“
Cuban states Titan’s crash didn’t convince him if it was due to a “rug pull,” a cryptocurrency exit scam.
Iron Finance, the team behind Titan, has dismissed this, asserting “there is no hacks, no exploits, or rug-pullings.“
In a report, Iron Finance stated the Titan crash was because of “the world’s first large-scale crypto bank run,” huge investors in Titan started to sell, indicating a further sell-off.
“When people panic and run over to the bank to withdraw their money in a short period, the bank may and will collapse,” they announced.
“We have learned a great deal from this incident and while nothing could be fixed in the current system, we will continue our journey with more products in the future.”
Analysts sent warnings of the risks of investing in cryptocurrencies like Titan and Bitcoin.
China’s Crypto Mining Crackdowns
China’s central bank announced it had ordered officials from the largest lenders to emphasized a ban on cryptocurrency services.
China has forced new stipulations on energy-intensive mining and reiterated rules for financial firms about providing crypto services.
Bitcoin emerged to gain new fans after El Salvador ruled earlier this month to make bitcoin legal currency. But China’s moves are surpassing any positive drive from that decision.
Bitcoin was under 8 percent to US$29,674.25, its lowest level since January 28, as per Coin Metrics. Bitcoin achieved to recover from the sub-US$30,000 level, rising to US$32,453.9.
Other cryptos joined the sell-off before paring losses, with ethereum, the second-biggest digital currency by market value, slumping 5 percent. The selling spilled over to smaller coins like Dogecoin; meme-inspired crypto that at one point tumbled more than 25 percent to erase all of its gains since April.
Crypto Investment Went Sour – Bitcoin Not Immune
Traders had warned a break below the psychologically important US$30,000 level could lead to more losses.
“Bitcoin has violated an important support level and it is likely that we may see more panic in the market as investors will think that it may be the end of bitcoin,” reported Naeem Aslam, AvaTrade’s Chief Market Analyst.
“But investors should remember that bitcoin is a kind of asset which has fought many similar pessimistic views many times. The current sell off could be the opportunity for many investors to load their portfolio with bitcoin; which is selling at a huge discount.”
Cuban informed Newsweek that he hadn’t “dug in enough to know if something nefarious was going on. But I do take responsibility for not doing the math before I invested.”
It was all in black and white how the math of the stable coin and Titan worked. If I looked, it was there — how much needed to be added to support Titan; what would happen if sales overtook ads. I chose not to do the work.
“For me, I decided it wasn’t worth my time to dig in far enough. I took a flyer. My mistake,” he cited.
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