Billionaire investor and shark tank star Mark Cuban called for regulation of cryptocurrencies after his investment in tokens fell from $64 to close to zero, with a focus on decentralized finance (defi) and stablecoins.
Cubans want Defi and stablecoin supervision after investing in crash tokens
Billionaire owner Mark Cuban of the NBA team Dallas Mavericks invested in a token that fell from about $64 to close to zero on Wednesday. Iron Finance called the collapse of its TITAN token “the world’s first large-scale crypto bank run.” At the time of writing, the price of the token is $0.000000029585.
In response to a tweet asking if he was “firm” or “firm” on Iron Finance’s tokens, Cuban wrote: “I was hit like everyone else. The crazy part was that I went out, thinking they were increasing TVL [Total Value Locked] enough. Then bang. “
This billionaire investor has been fascinated by defi for some time. He wrote a blog post on June 13 to tout the potential of defi innovation and TITAN. Some people say that the Iron Finance token is popular because of Cuba.
In a blog post, the Shark Tank star explained that he is a small liquidity provider (LP) for Quickswap. “I have provided 2 different tokens (DAI/TITAN) so that Quikswap can swap between these two tokens… At the time of writing, my initial investment of $75,000 (based on fees only) The return is an annualized rate of return of about 206%…In exchange for TITAN and Quickswap to provide the required liquidity for their business, I received 0.25 of the swap volume between these two tokens.”
In a letter to Bloomberg on Thursday, Cuban talked about his experience at TITAN. He elaborated:
I read it. Decided to give it a try. Came out and came back when TVL started to pick up. As a percentage of my crypto portfolio, it is small. But this is enough to make me feel unhappy about it.
“But in a larger context, this is no different from the angel investment risk I took on,” he pointed out. “In any new industry, I will take risks. The goal is not only to make money, but also to learn. Although I am rude in this regard, it is really because I am lazy.”
When it comes to regulation, he suggested, “If you are looking for lessons, the real problem is regulation,” emphasizing:
There should be regulation to define what is a stablecoin and what is acceptable collateral.
“Should we ask for one dollar per dollar, or define acceptable collateral options, such as U.S. Treasury bonds?” He continued. “Can you call yourself a stablecoin? If the collateral is not 1:1, do you have to clearly define the risk math for all users and get approval before release? It may be considered that stablecoins will most likely need to reach hundreds of millions or more in value to be useful , They should have to register.”
However, some people do not believe the story of Cuban. Twitter user Paul Bryan wrote: “I didn’t believe that Mark Cuban would be caught off guard by the TITAN carpet for a nanosecond. The creator is anonymous, its utility is zero, and he uses shillings at the top. “
Alex Sanders, the founder of Nugget’s News, wrote on Twitter: “After Mark Cuban posted on TITAN, the incident was called the’Cuba Missile Crisis’ and it was smoked 100 times, but Firm to 0.”
At the same time, some people criticized Cuba for calling for supervision after claiming to have lost money in the incident. Entrepreneur Peng Luosheng wrote on Twitter: “Mark Cuban invested in the cryptocurrency TITAN, but lost nearly $0. After that, he called for strengthening the supervision of Defi. When making crypto investments other than BTC and ETH, Be careful.” CIO David Schawel of Family Management Corporation commented:
I am sad when people admit that they are lazy in due diligence but blame the lack of supervision.
What do you think of Mark Cuban’s call for regulation after being hit by the token collapse? Let us know in the comments section below.
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