[Myth collapse] The historic crash that fell to 1 / 4.2 billion in one day The myth collapse crisis of investment alchemy of the virtual currency "Iron Titanium (TITAN)"

[Myth collapse] The historic crash that fell to 1 / 4.2 billion in one day The myth collapse crisis of investment alchemy of the virtual currency "Iron Titanium (TITAN)"

1The historic crash that fell to 1 / 4.2 billion in a day The virtual currency "TITAN" is a token to secure the value of the crypto asset "IRON" The virtual currency "Iron Titanium (TITAN)" is 4.2 billion in a day The historic crash that fell to one-third The investment alchemy myth is on the verge of collapse

Spectacular Cryptocurrency Cryptocurrency:Iron Titanium (TITAN) drops from $ 60 to $ 0 in less than a day

Cryptographic assets (virtual currency) "Iron Titanium (TITAN)" issued by Iron Finance of the United States suddenly plummeted、Almost worthless、2021Around 2:00 pm on June 16, 2014, the high price of 1TITAN = $ 64.19 was reached.。

33Half price to dollars (about 3,600 yen)。This is “Panic selling “Next door、17It fell to $ 0.000000015109 (nearly zero), a factor of 4.2 billion on the day (according to CoinGecko data).

According to one theory、The crash of TITAN、There is a thing that the cryptocurrency developer was a "rug pull" that abandoned the project and ran away with investor funds。

Iron Finance is funded by prominent and brutal millionaire investor Mark Cuban ...

Mark Cuban, owner of the rugged billionaire NBA basketball team Dallas Mavericks(Mark Cuban)Is、Cryptocurrency Iron Titanium (TITAN) was one of the investors burned in a spectacular crypto crash that fell from $ 60 to $ 0 in less than a day.。

Mark Cuban, a prominent investor in iron finance(Mark Cuban)It is also widely reported that。617th of March、Bloomberg、Mark Cuban(Mark Cuban)But、Following the recent price plunge、Reported that he explained that staple coins need regulation。

By email to Bloomberg、What he learned from investing、Explained the need for regulation of staple coins。

Investor Mark Cuban(Mark Cuban)Talks about the need for regulation

In any new industry、Not just to make money、Take risks to learn。In DiFi management、It is important to calculate profits etc.、I neglected to calculate important indicators。The investment amount is、All “I “When “T “Wasn't big enough to feel the need to mark。

However、If you want lessons、The real problem is the regulatory issue。Many players、Will try to establish stale coins with the new L1 and L2。For the winner、Will be a very lucrative commission and arbitrage business。

What is a stable coin、Regulations are needed to define what kind of collateral is allowed。1Do you demand one dollar for the dollar?、Or do you define acceptable collateral options such as US Treasuries?。

When the collateral that can be called a stable coin is not one-to-one、Its risk calculation is clearly defined for all users、Does it have to be approved before release?

Probably、For stable coins to be useful、Considering that it must be worth hundreds of millions of yen or more、I think I have to register。

Another theory、Because the price of TITAN went down、Trust in TITAN has begun to evaporate.。A large investor called a "whale" cashes、Because it caused further panic、A death spiral has occurred。

The result of a large number of sales、TITAN last week、Lose almost all value、6Prices that were over US $ 60 on 16th of March、The next morning it fell just above US $ 0。

What is TITAN that caused a historic crash in just one day?、What kind of virtual currency is it?

Original purpose of Iron Titanium (TITAN) = Virtual currency for payment methods

1The historic crash that fell to 1 / 4.2 billion in a day The virtual currency "TITAN" is a token to secure the value of the crypto asset "IRON"

Iron Titanium(TITAN)Is a type of virtual currency called "stable coin"。What is stable coin?、A virtual currency that is linked to the value of legal tender such as the dollar and euro.。Because Bitcoin, which is a typical virtual currency, is not linked with legal tender (real currency)、Prices fluctuate、Of course as a currency、Made with a focus on not being able to be used as a speculative product。

For example、1Exporting cars at a price of $ 35,000 per Bitcoin、If the price drops to $ 10,000 after you settle with Bitcoin、You can only receive less than one-third of the price。With this、Risk is too great to use electronic currency as a payment method。

So stable coins、By keeping the exchange ratio with real currency constant、Guarantees stability as a currency。this is、35It's the same as the gold standard, where the dollar is equivalent to an ounce of gold.。For stable coins、You can think of gold as replacing the real currency。

Cryptocurrency : Iron Titanium (TITAN) was a virtual currency that was said to "never crash" ...

why、A virtual currency with such high stability、Even though the real currency hasn't plummeted、42Did it cause a devastating crash of one hundred millionth? That's because there was a problem with the Iron Titanium (TITAN) system itself.。

There are three types of stable coins。

(1)Statutory currency guarantee
(2)Cryptocurrency collateral type
(3)Unsecured

(1)Legal tender collateral type、It is tied to the real currency、This is the main type of stable coin.。

(2)Cryptocurrency collateral type、Ethereum (ETH)、Basic Attention Token (BAT)、US dollar coin (USDC / USDT) and other virtual currencies、Less stable than legal tender collateral。

(3)Unsecured type is called "algorithm stable coin"、Not tied to real or other cryptocurrencies。Instead、Control the issuance amount using an algorithm、Prevents a crash。The lowest reliability of stability、3The least popular of the types of stable coins。

Iron Titanium (TITAN) was an unsecured algorithm stable coin。The unpopular algorithm stable coin、Soaring prices are "unexpected" in the first place。Because、The purpose of cryptocurrencies is to stabilize the exchange value、This is because the mechanism is to "prevent a crash by preventing a surge".。In other words, "If the mountain is low, the valley is shallow."。

Cryptocurrency : Iron Titanium (TITAN) investment was called "alchemy"

In addition to TITAN, Iron Finance、We issue Iron Titanium (TITAN), which is a virtual currency-backed stable coin.。This IRON is、(1)As mentioned in、It is tied to USD coin, which is a legal tender-backed stable coin.。

USD coins、1Fixed at USDC = 1USD。1How to get IRON、0.75Requires USDC and 0.25 TITAN。Then、How do you procure TITAN? There are two ways to do this。1One is、How to buy TITAN on the exchange。The other is、Deposit IRON and USDC、How to receive TITAN as interest (reward)。

Then、The cycle will be as follows。

(1)"Obtain TITAN (at the exchange)" → "Exchange 0.75USDC + 0.25TITAN for 1IRON" → "Deposit IRON and USDC" → (2) "Obtain TITAN (as interest)" → "0.75USDC + 0.25TITAN for 1IRON" Exchange for "...

What is important here、Because the exchange ratio is tied、It is always "1IRON = 1USDC"。

In other words、2In the cycle after the first time、You can buy USDC at a 25% discount with free TITAN.。further、USDC, a fiat-backed stub coin、Has the same value as the real currency dollar。

If the transaction price of one IRON exceeds $ 1、You can sell it in the cryptocurrency market、Even if it plunges, you can get $ 1 by exchanging it for USDC。

This is safe and secure “alchemy “And、Pushing up the market price of Iron Titanium (TITAN)。originally、1Each TITAN should have been worth $ 0.25、Transaction prices soar due to the spread of "alchemy"。Jumped to $ 64.19, more than 250 times the exchange rate。

An alchemical currency that has destroyed the myth of stable coin "stability" : Why did Iron Titanium (TITAN) go bankrupt?

Alchemy cryptocurrency : Why did Iron Titanium (TITAN) go bankrupt? It was in the "stability" unique to stable coins。In order to link the market price of USDC, which is a staple coin backed by legal tender, to the dollar、USDC operator must hold a certain amount of dollars。This is the "stability" of stable coins。

Similarly、Iron Finance, the operating company of IRON,、To link the market price of IRON to USDC、Must hold USDC。When Iron Finance runs out of USDC、You will not be able to exchange IRON for USDC。If the price of IRON is $ 1 or more、Holders want to sell IRON in the cryptocurrency market priced at $ 1 or more、There is no problem because the USDC at hand of Iron Finance will not decrease。

However、When the price goes below $ 1、Holder asks IRON operating company to redeem USDC。However、When the price drops below $ 1、The holder asks the IRON operating company to redeem the USDC.、USDC at hand of IRON Finance has decreased、Redemption will stop when it disappears。Investors who know this mechanism、When the price of TITAN starts to fall、Immediately sell TITAN and exchange IRON for USDC。

Actually、IRON receives the crash of TITAN、6It fell to the lowest price of $ 0.65 on the 17th of March.。Originally、This crash could have been redeemed for "75 cents USDC and 25 cents TITAN per IRON"、Iron Finance announced on June 17 that "TITAN's price has gone to zero"、Cashing is no longer possible。

Iron Finance, which caused the historic crash、"What we have experienced、A historic run on modern high-tech cryptocurrencies、It's the worst thing for the protocol, "he commented online like someone else.、Buying anger from investors。

Iron finance is an emerging digital currency、The market capitalization of TITAN, which has become virtually worthless, peaked at $ 2 billion (about 220 billion yen).、It ’s smaller than major digital currencies such as Bitcoin.。

Also、TITAN transactions are still small。this is、If the price rises and returns to its original value of $ 0.25、Because you can make huge profits with a small investment.。of course、There is a great possibility that it will disappear、Investing like a stock or lottery in a bankrupt company is a special case.。