Mark Cuban calls for crypto and stablecoin regulation after the Iron Finance Rug Pull that ended up tanking the price of TITAN to zero as we reported in our previous cryptocurrency news today.
Billionaire investor and crypto proponent Mark Cuban calls for crypto regulation as of late to define stable coins and what collateralization is acceptable after the bank run on Iron Finance protocol that cost him quite a lot. According to Iron finance, the collateralized stablecoin project was a subject of a historical bank run which resulted in the price of the IRON stablecoin moving off peg. As a consequence, the price of the TITAN coin crashed by 100% over two days from its high of $64,04.
Why is it that everytime we win an influencer, they turn around and go full wack
Cuban went Degen to “Let’s have the US regulate smart contracts from anon devs”
Elon went from BTC is money to environment nightmare
All we have left is @tobi and he just verified his bitclout :'( https://t.co/Mn6rVqFOcB
— DCF GOD (@dcfgod) June 17, 2021
Cuban blamed himself for being lazy and not doing enough research but he did have questions about the regulation of stablecoins:
“There should be regulation to define what a stablecoin is and what collateralization is acceptable. Should we require $1 in U.S. currency for every dollar, or define acceptable collateralization options, like U.S. Treasuries. “Even though I got rugged on this, it’s really on me for being lazy. The thing about DeFi plays like this is that it’s all about revenue and math and I was too lazy to do the math to determine what the key metrics were.”
Kraken CEO Jesse Powell slammed Cuban on Twitter and said that a lack of stablecoin regulation isn’t really the problem:
“Not doing your own research and YOLOing into a terrible investment because your time was worth more than your money is your problem.”
I got hit like everyone else. Crazy part is I got out, thought they were increasing their TVL enough. Than Bam.
— Mark Cuban (@mcuban) June 16, 2021
The stablecoin sector is under the spotlight of US lawmakers and they consider ways to regulate the evolving sector. In 2020, a bill dubbed the “STABLE Act” was introduced which will require stablecoin issuers to obtain a banking charting and to comply with traditional banking regulations. After the crypto downturn last month, Federal Reserve Chair Jerome Powell emphasized that as the stablecoin use increases, so must their attention to the appropriate regulatory and oversight framework.
TITAN price chart CoinGecko
In a blog post dubbed “Iron Finance Post-Mortem 17 June 2021,” the project said it is planning to hire a third party and conduct an analysis of the protocol so it can understand the circumstances that led to this outcome. IRON is a collateralized stable coin that was supposed to be pegged at $1 and the stablecoin is collateralized by a combination of the native TITAN and the USDC stable coin. The ratio of USDC to the total IRON Supply is dubbed the Collateral Ratio. After a mass sell-off from the whales which caused the price of TITAN to crash, the IRON stablecoin also dropped below its $1 peg.