Billionaire investor and owner of the NBA’s Dallas Mavericks team, Mark Cuban calls for regulation of the decentralized finance (DeFi) sector. After the project he invested in suddenly collapsed.
According to Iron Finance, the partially collateralized stablecoin project was the subject of a “historic bank panic.” Which caused the price of the stablecoin IRON to be unlinked from its backing. As a consequence, the price of Iron’s native token TITAN plunged nearly 100% in two days from its all-time high of $ 64.04.
The billionaire investor had mentioned the TITAN token in a blog post on Sunday titled “The Brilliance of Yield Farming, Providing Liquidity, and Valuation of Crypto Projects.” Reports claim that Cuban had invested USD 75,000 to provide liquidity to the protocol.
Mark Cuban blamed himself for being “lazy”
Speaking to Bloomberg on June 17, Mark Cuban blamed himself for “being lazy.” And, not having investigated enough, but also Mark Cuban asked and raised regulations:
“There should be a regulation to define what is a stablecoin and what collateralization is acceptable. Should we demand $ 1 in US currency for every dollar, or define acceptable collateralization options, such as US Treasuries? ‘
Even though I have been exposed, the fault is mine for being lazy. The thing about these kinds of DeFi plays is that it’s all about revenue and math. And I was lazy to do the math to determine what the key metrics were, “Cuban said.
Iron Finance highlights fractional reserve issues
In a blog post dubbed “Iron Finance Post-Mortem June 17, 2021,” the project noted that it is planning to hire a third party to conduct an in-depth analysis of the protocol. So that you can “understand all the circumstances that led to such an outcome.”
IRON is a partially collateralized stablecoin that is intended to be set at $ 1. The stablecoin is collateralized by a combination of its native token TITAN and the stablecoin USDC. The relationship between USDC and IRON’s total supply is called the Collateral Ratio (CR).
Grayscale explores 13 other cryptocurrencies for its funds
Institutional asset manager Grayscale has announced that another 13 crypto assets are being considered. For your suite of cryptocurrency mutual fund products.
Revealed on June 18, the potential assets primarily represent the decentralized finance (DeFi) sector, including: 1inch, Bancor, Curve, Kava, Kyber Network, Loopring, Polygon, Ren, Universal Market Access, and 0x.
The native tokens of the scalable high-speed blockchain networks Solana, Near and Dfinity. They have also been added to the list of cryptocurrencies that Grayscale considers.
The new additions of these cryptocurrencies bring to 31 the total number of assets that Grayscale explores. Grayscale currently offers products that track the performance of 13 different assets.
Grayscale emphasizes that “not every asset under consideration will become one of its investment products,” and that certainly appears to have been the case for the previously announced assets under consideration. Like Cardano, Eos and Tezos.
Spanish bank BBVA opens Bitcoin trading to clients in Switzerland
Spanish bank BBVA reported today that it is about to launch a bitcoin trading service for private banking clients in Switzerland interested in investing in digital assets.
The bank said the new business, which will be launched next Monday, June 21, would include bitcoin trading and custody services. With the aim of extending it to other cryptocurrencies. It would not offer advice on these types of investments, he added.
BBVA said that during a gradual rollout it had detected a “significant desire” among investors of crypto assets or digital assets to diversify their portfolios despite their volatility and high risk. The executive president of BBVA Switzerland, Alfonso Gómez, explained in a statement.
Also, today the bank BBVA said that it was limiting this new…