Iron Finance Dev Coin 'Titan'
Plunges from $60s to $0s in One Day
"Rare Level Even in the Rout-Prone Crypto Market"
[Asia Economy Reporter Lim Juhyung] An unprecedented incident occurred where the value of a cryptocurrency plummeted vertically from the $60 (67,800 KRW) range to the '0' dollar range within a day. This appears to be due to a so-called 'bank run' phenomenon, where customers, doubting the bank's ability to pay deposits, withdrew large amounts of money.
On the 17th (local time), according to the US financial media 'Bloomberg News,' the value of 'Iron Titanium (Titan),' created by the cryptocurrency developer Iron Finance, plunged from the $60 range to the $0 range in just one day.
Bloomberg explained this crash phenomenon by saying, "Even in the cryptocurrency market, where crashes are common, such a steep drop in a short period is very rare."
Iron Finance issued a statement on the same day, admitting, "The world's first large-scale bank run has occurred," and "We did not expect such an event to happen."
The recent one-week price trend of 'Iron Titanium,' a stablecoin-type cryptocurrency developed by Iron Finance. After peaking in the $60 range, its value virtually evaporated to the $0 range in just one day. / Photo by CoinMarketCap
The value of Iron Finance's Titan coin had been on a recent upward trend. Until the morning of the 12th, it was only around $14 (15,820 KRW), but between the 15th and 16th, it suddenly surged to $64, reaching its peak. However, it then sharply declined, and by the afternoon of the 17th, its value had virtually disappeared.
Titan is a cryptocurrency known as a 'stable coin.' Stable coins are pegged to real fiat currencies such as the dollar or euro, so they generally have relatively low price volatility. Nevertheless, Titan's value suddenly evaporated.
The developer stated that they do not fully understand why this phenomenon occurred, but experts speculate that this incident represents the first bank run in cryptocurrency history.
As a sudden surge in selling occurred with the rapid price increase of the cryptocurrency, existing investors began withdrawing deposits out of concern that Titanium might face insolvency, and this phenomenon escalated into a large-scale bank run, according to analysis.
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