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IRON Titanium token (TITAN) took a massive nosedive last week. Today, we want to show you whether that makes it a buy low opportunity or so toxic you should run away...
The cryptocurrency owned by Iron Finance fell from $65 to near zero (a fraction of a fraction of a penny) from last Wednesday to now.
Mark Cuban lost money in the event - exactly how much he lost is the subject of Internet debate.
The NBC Shark Tank host, Dallas Mavericks owner, and venture capital guru claims he owned a small amount of TITAN. Meanwhile, some say he was the sole provider of TITAN on the Polygon blockchain.
At least, this is the story according to Reddit users who claim to have found Cuban's DeFi (decentralized finance) wallet online.
Whether it's true or not, we know that a whale or two did sell a massive amount of the token to sink the price to where it is now. The way Iron Titanium works, a dip from $65 to $60 was enough for people to start emptying their pockets of TITAN.
This led to a destabilizing of the IRON token it was meant to finance, as it was "de-pegged" from the U.S. dollar.
This coin's market cap was once $2 billion and is now completely worthless. Here, we'll tell you whether the Iron Titanium token is completely dead in the water or if it has any chance at recovery.
What Is the IRON Titanium Token?
TITAN is a share token that backs the development of a stablecoin called IRON. Stablecoins are cryptocurrencies whose prices are "pegged" to that of a commodity or fiat currency, to keep them stable.
Users can mint new IRON stablecoins by locking up TITAN tokens. And the more new stablecoins are minted, the lower the supply of TITAN, and the higher the price.
When a large chunk of shares are not locked up and get sold, that crushes the price of the token and destabilizes the coin.
IRON was meant to be pegged to the U.S. dollar. But it lost its pegging as the TITAN token dramatically lost its value – because of the whale sell-off. In other words, the value of IRON started to fall relative to the dollar, since the coin lost its backing.
The whale sell-off was nothing short of an existential threat for the IRON Titanium token.
Since the dollar value of IRON started to inflate, people started trading TITAN for IRON, which pumped IRON even further and brought TITAN to zero.
Where Is the IRON Titanium Token Headed Next?
This fiasco has gotten attention primarily due to Mark Cuban’s name recognition. Really, it’s not the first and won’t be the last time a sell-off brings a cryptocurrency to its knees.
It all goes back to the way a protocol is designed. You will see a number of cryptos come and go – some claiming to be stores of value, some aiming to be a medium of exchange, some merely gimmicks, some probably scams.
In the case of the IRON Titanium, there was no scam. It was a protocol doomed to fail under a particular set of circumstances. Unfortunately, it met those exact circumstances.
Now that it’s hit rock bottom, we don’t expect to hear much more from TITAN.
Of course, anything can happen in the crypto trading world. You never know when a band of Robinhood traders will decide to pump the price of a security again.
But the likelihood of that is slim. Just like we saw a mass grave of startups from the dot-com boom, TITAN is laid to rest with others once-hyped and now deceased.
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About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.