This is a re-post of earlier Twitter thread of this week.
Today we discuss the most massive algorithmic stablecoin crash known to humankind, $TITAN of @IronFinance
Or: How @mcuban was RUGGED BY THE PEOPLE and how to lose TWO BILLION DOLLARS.
But let's get started.
$2B total value locked (TVL) crashed down fast, $TITAN price crashed down from $60 to ZERO.
- The investment advice
- Was it a scam, rug pull, hack, etc
- What other algorithmic stablecoins share the similar risks
Why I put money on a project that failed?
- Devs were building (some) stuff - instead of just cloning
- Getting traction
- The project was beyond the point there is no need to rug pull
- Anon team
- Too good to be true: Price goes up too fast, yields were way too high
Also some of your dog coins, the etc, project takes off always sell immediately at least as much you get your original investment back.
THE PEOPLE were selling too much.
RUGGED BY THE PEOPLE.
Turkish people have seen haircuts larger than 30% so not that bad.
Never buy assets that go up too fast and have pump characteristics. But this is not a scam either. This happens in all markets.
See: $GMC, $AMC, $DOGE, $SHIBA or LUMBER
Most of the investors had only paper profits on $TITAN. Somehow if you bought too late probably lost all of it. But there was never a two billion dollar inflow to $TITAN token, so by definition, you cannot lose two billion dollars.
Who is next in the line to go down with this fate.
ATTACK ON THE TITAN.
#AttackOnTitan #ShingekiNoKyojin #Shingeki #進撃の巨人
But same can be said for all currencies.
We all die one day.
But algo stables tend to die quicker.
"Fail fast" as VCs, say.
So we have 7 years of history with algo stables.
They all assume someone is buying the other side within certain risk parameters.
($IRON was kind of a clone of $FRAX, but not sure if they used the same codebase or fork)
But this was no rug.
But like all things you hear at the gas station, do not take this as truth until the dev team confirms themselves.
@traders_insight @senamakel @dmccCT @MrCoinnoisseur @brewhaus_crypto @zjdolan