On Wednesday, June 16, 2021, the TITAN Coin cryptocurrency plummeted in value, from initially as much as over $60 to just over $0 within a 24-hour period. One of the early investors was Mark Cuban, among others, who lost over $500,000 due to such a steep fall. The creators of this cryptocurrency claim that the fraud did not take place. How is it really and what is Mark Cuban’s attitude to the whole situation?
Mark Cuban – a well-known American investor
The TITAN Coin cryptocurrency, belonging to IRON Finance, and in fact its crash, gained so much interest partly because Mark Cuban invested in it. He is a well-known public personality and also a well-known investor, not only in the cryptocurrency market. Mark Cuban is an American billionaire (his fortune is estimated to be as high as $4.4 billion!), famous, among other things, for being a juror in the show Shark Tank. He is also the owner of the NBA team Dallas Mavericks.
Mark Cuban, who previously encouraged the purchase of TITAN Coin token, in his post posted on Twitter, admitted that he “didn’t do enough research before deciding to invest in TITAN Coin” and also that he “lost the money put into this investment”. The investor also reported that he “is not sure if the sharp decline is related to the lack of liquidity or the Rug Pull scam.”
What really is a “Rug Pull”?
Most experts in the industry suspect that the nearly 100% drop in the TITAN token is related to a scam, however. So what is the so-called “Rug Pull”? It is a term closely related to the DeFi area, which is the area of decentralized finance. “Rug Pull” literally means “to pull the rug out”, and this is how it can also be associated. This is because it denotes a situation where the creators of a cryptocurrency put it up for sale on a decentralized exchange, and after raising enough funds, they abandon the project and confiscate the funds paid by investors.
Is TITAN Coin’s decline in value a “Rug Pull?”
For the time being, we are not completely convinced of this. The creators of TITAN Coin claim that it is a liquidity problem with this token. On the official IRON Finance website, there is a message that says to “not buy TITAN Coin any IRON Coin”. The message also states that no fraud has taken place.
In a statement released by IRON Finance on Thursday, the company claims that the TITAN Coin meltdown was caused by “the world’s first serial cryptocurrency sale,” in which large investors in TITAN Coin began selling it, causing a lack of liquidity across the ecosystem.
Despite this announcement, however, Mark Cuban does not rule out becoming a victim of a “Rug Pull” attack.