Iron Finance
A partially collateralized stablecoin that relied on its volatile TITAN token to hold its peg. Large holders sold, panic spread, and TITAN fell from about $60 to near zero within hours. Investor Mark Cuban said he lost money and later called for regulation.
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Spacing is ordinal, not to scale. Numbers match the list below.
- 1
TVL grew explosively within weeks on very high yields.
Visible 1 month before death | Yield with no source
- 2
The peg was partly backed by a volatile token, not full collateral.
Visible 1 month before death | Backed by its own token
- 3
A few large wallets could move the whole market.
Visible 1 month before death | Concentrated exposure
A stablecoin backed by a volatile token is a leverage ladder, not a peg.
- In Token Crash Postmortem, Iron Finance Says It Suffered Crypto's 'First Large-Scale Bank Run'CoinDesk
- Iron Finance Post-Mortem 17 June 2021Iron Finance (Medium)
- Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and SteelFederal Reserve Board
Editorial summary of public reporting. Allegations are labeled as allegations. Not financial or legal advice.
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