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Mark Cuban, owner of the Dallas Mavericks. Photo / AP

Billionaire investor Mark Cuban said it was “my mistake” not to do his homework on the Titan cryptocurrency which went from $ 60 to $ 0 in one day.

The Dallas Mavericks basketball team owner and host of Shark Tank said on Twitter he took a “hit” on Titan and said he takes full responsibility for the loss.

The cryptocurrency token lost almost all of its value last Wednesday.

Cuban did not disclose how much he lost in the crash, but told Bloomberg his investment “was not so large that I felt the need to point every I and go through every T.”

He called for more regulation to “define what a stable part is.”

Cuban says he wasn’t sure the crash was due to a “carpet pull,” which is essentially a cryptocurrency exit scam.

Iron Finance, the team behind Titan, denied this, saying “there is no hacking, no exploits or all-in-all”.

In a statement, Iron Finance said the Titan crash was due to “the world’s first large-scale banking transaction,” in which Titan’s big investors began to sell, prompting another sell-off.

“When people panic and run to the bank to withdraw their money within a short period of time, the bank can collapse and will collapse,” he said. “We have learned a lot from this incident and while nothing can be fixed in the current system, we will continue our journey with more products in the future.”

Experts have warned of the dangers of investing in cryptocurrencies like Titan and Bitcoin.

Overnight, bitcoin fell below US $ 30,000 for the first time in five months.

China’s central bank said it has summoned officials from the largest lenders to reiterate the ban on cryptocurrency services.

China has imposed new restrictions on energy-intensive mining and reiterated rules for financial companies regarding the provision of crypto services.

Bitcoin appeared to be gaining new fans after El Salvador decided earlier this month to make bitcoin legal tender. But China’s actions outweigh any positive momentum resulting from the move.

Bitcoin fell 8% to $ 29,674.25, its lowest level since Jan. 28, according to Coin Metrics. Bitcoin managed to recover from the level below US $ 30,000, climbing to US $ 32,453.9.

Other cryptos joined the sell-off before cutting losses, with Ethereum, the second-largest digital currency in terms of market value, slumping 5%. The sale spilled over to smaller coins like Dogecoin, a memes-inspired crypto that at one point fell more than 25% to wipe out all its gains since April.

Traders had warned that a break below the psychologically important US $ 30,000 level could result in more losses.

“Bitcoin has breached an important support level and it is likely that we will see more panic in the market as investors will think this could be the end of bitcoin,” wrote Naeem Aslam, chief market analyst at AvaTrade.

“But investors should remember that bitcoin is a kind of asset that has repeatedly fought many similar pessimistic views. The current sale could be an opportunity for many investors to load their wallets with bitcoin, which sells at a great price. “

Cuban told Newsweek he didn’t “dig enough to see if anything bad was going on. But I take responsibility for not doing the math before investing.”

“It was all in black and white how the math of the stable part and Titan worked. If I looked, it was there – how much had to be added to support Titan and what would happen if the sales exceeded the additions. chose not to have it do the job.

“For me, I decided it wasn’t worth digging deep enough. I took a flyer. My mistake,” he said.

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Source: www.nzherald.co.nz
This notice was published: 2021-06-22 20:51:09

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