No one is immune to bad decisions when it comes to crypto investing and Mark Cuban is an example of that. The billionaire recently revealed that he too had made a grave investing mistake that had cost him a lot of money. Cuban opened up to the New York Times in a recent report about how a lack of research had led him to lose a lot of money on a new cryptocurrency.
Mark Cuban Loses $200K
The TITAN token was a decentralized finance (DeFi) token that made waves in the space mid last year. At this time, there was not a lot known about DeFi projects, and investors were pouring cash into the space hoping for quick and high returns. One of the ways investors made money was through providing liquidity for a particular token, which Cuban did. But also investing directly in the tokens themselves.
Related Reading | Hollywood Star Gwyneth Paltrow Joins The BAYC
Cuban had pushed the token and had in turn invested in the token. He admitted to the NYT that while he made money as a liquidity provider, he eventually lost out on a lot of money as an investor. An unfortunate situation which he attributed to his lack of proper research. “I made money as a liquidity provider and lost money as a speculator,” Cuban revealed. “I should have done more homework on it.”
Crypto total market cap falls to $1.6 trillion | Source: Crypto Total Market Cap on TradingView.com
He explained that he had become complicit and had failed to do due diligence such as looking at the revenue and doing the math. “The thing about de fi plays like this is that it’s all about revenue and math, and I was too lazy to do the math to determine what the key metrics were,” Cuban told Bloomberg.
In the end, Cuban had lost about $200,000 when the project failed.
Rise And Fall Of TITAN
Rugs pulls are no longer a novel concept and that is exactly what happened with the TITAN project. Rug pulls are a widely spread scam in the DeFi space whereas the creators of a token dump a large portion of the supply on its holders, making off with the proceeds and leaving investors with worthless bags. In its prime, it was one of the hottest DeFi tokens as investors rushed to catch the train of profits that they were witnessing.
Related Reading | Crypto Money Laundering Booms 30% in 2021
With backing from prominent figures like Mark Cuban, the token had grown so much that it hit $60 apiece at one point in time. This would prove to be the beginning of the end as creators of the TITAN cryptocurrency had ‘rugged’ the project not long after.
Cuban had lost a lot of money alongside other investors that were left holding the TITAN tokens. The price had crashed to $0 following panic selling from the investors.
Featured image from Inc. Magazine, chart from TradingView.com