Billionaire investor and owner of the Dallas Mavericks team of the NBA, Mark Cuban calls for regulation of the decentralized finance sector (DeFi). After the project you 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 disassociate itself from its backing. As a result, the price of Iron’s native token, TITAN, plummeted almost 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, liquidity provision, and valuing 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 researched enough, but also Mark Cuban asked and raised regulations:
«There should be a regulation to define what a stablecoin is and what collateralization is acceptable. Should we demand 1 dollar in US currency for every dollar, or define acceptable collateralization options, such as US Treasury bonds?».
“Even if I have exposed myself, it is my fault for being lazy. The thing about this kind of DeFi play is that it’s all about income and math. And I was lazy to do the math to determine what the key metrics were.“, Cuban said.
Iron Finance highlights the problems of fractional reserves
In a blog post dubbed “Iron Finance Post-Mortem 17 June 2021,” the project noted that it is planning to hire a third party to conduct an in-depth analysis of the protocol. So you can ” understand all the circumstances that led to such a result.”
IRON is a partially collateralized stablecoin that is intended to fix at $1. The stablecoin is collateralized by a combination of its native TITAN token and the USDC stablecoin. The relationship between the USDC and the total IRON supply is called the Collateral Ratio (CR).
Grayscale explores 13 other cryptocurrencies for your funds
Institutional asset manager Grayscale has announced that 13 other crypto assets are being considered. For your set of cryptocurrency investment fund products.
Revealed on June 18, potential assets mainly 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 Solana, Near and Dfinity high-speed scalable blockchain networks. They have also been added to the list of cryptocurrencies 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 all of the assets under consideration will become one of your investment products,” and that certainly seems to have been the case with the previously announced assets under consideration. Like Cardano, Eos and Tezos.
Spanish bank BBVA opens Bitcoin trading to customers 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 launch 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 such investments, he added.
BBVA said that during a gradual rollout it had detected a “significant desire” among crypto-asset or digital asset investors to diversify their portfolios despite their volatility and high risk. The executive chairman of BBVA Suiza, Alfonso Gómez, explained in a statement.
Likewise, today BBVA bank said it was limiting this new cryptocurrency service to Switzerland because the country has clear regulation and widespread adoption of digital assets.
«Its extension to new countries or other types of customers will depend on whether the markets meet the right conditions in terms of maturity, demand and regulation», add. BBVA is present in Switzerland, through a franchise 100% owned by the Group, dedicated to international banking services.
Likewise, in a press release, BBVA said that it was after six months of testing with a selected group of users that it decided to make its first crypto asset trading and custody service available to all its private banking customers in Switzerland.
Sichuan city orders crypto miners to stop operating for investigation
Authorities in Ya’an city, a prefecture-level city in the western part of Sichuan province, ordered the closure of local Bitcoin mining operations for examination. This was reported on Friday by Chinese financial publication Sina Finance.
Citing an anonymous source from China news agency PA News, the report said it is unclear when or if miners will restart mining operations.
According to Chinese cryptocurrency blogger Colin Wu, the latest decision will affect major Bitcoin mining farms in Sichuan, which is China’s largest hydropower producer.
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