Iron titanium token falls to near zero amid panic-induced selling

The value of the iron titanium token, the share token of a decentralized finance protocol, fell from $60 to near zero in a day. The token was part of an algorithmic stablecoin project called Iron Finance.

Why should we care?
Reports suggest that the TITAN coin became overpriced. This created a “negative feedback loop” in which a series of TITAN holders rushed to sell, causing what Iron Finance team called the world’s first large-scale crypto bank run. A bank run is a situation whereby a large number of users attempt to withdraw their money believing the financial institution will cease to exist. “Remember that Iron.finance is a partially collateralized stablecoin, which is similar to the fractional reserve banking of the modern world,” Iron Finance said. “When people panic and run over to the bank to withdraw their money in a short period, the bank may and will collapse.” In response to the course of events, billionaire investor Mark Cuban suggested stablecoins need more oversight. “There should be regulation to define what a stablecoin is and what collateralization is acceptable,” he said in a statement. Apparently, Cuban lost some money as a result of the bank run, but he didn’t say how much: "It was enough that I wasn't happy about it,” he wrote.