{"id":8401,"date":"2021-06-17T18:54:05","date_gmt":"2021-06-17T18:54:05","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/iron-finance-token-slides-from-64-to-near-zero-following-large-scale-crypto-bank-run\/"},"modified":"2021-06-17T18:54:05","modified_gmt":"2021-06-17T18:54:05","slug":"iron-finance-token-slides-from-64-to-near-zero-following-large-scale-crypto-bank-run","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/iron-finance-token-slides-from-64-to-near-zero-following-large-scale-crypto-bank-run\/","title":{"rendered":"Iron Finance Token Slides From $64 to Near Zero Following \u2018Large-Scale Crypto Bank Run\u2019"},"content":{"rendered":"

The Iron Titanium token (TITAN) value has quaked a great deal after the project suffered from what the team called \u201cthe world\u2019s first large-scale crypto bank run.\u201d After touching a high of $64 per token on Wednesday, the project slid to near zero and remained worthless on Thursday afternoon.<\/strong><\/p>\n

Iron Finance Claims Project Suffered from a \u2018Bank Run\u2019<\/h2>\n

The world of decentralized finance (defi) is exciting but it also comes with major risks stemming from smart contract exploits, flash loans<\/a>, and alleged bank runs. That was the case for the Iron Finance<\/a> project, as the team\u2019s native token lost all of its value in a matter of hours. On Wednesday, the Iron Finance team explained<\/a> what happened on Twitter and then followed up with a post mortem on Thursday.<\/p>\n

\u201cDear community, please withdraw liquidity from all pools. We will share a post-mortem as soon as we have a better understanding of this bank run,\u201d the official Twitter account noted on Wednesday. \u201cUSDC collateral is available for redemption as normal,\u201d the Twitter account added.<\/p>\n

Of course, the Iron Finance protocol team was criticized immediately after the tweet and people were not pleased with the situation. Iron Finance\u2019s post mortem<\/a> the following day explains how the project suffered. \u201cWe never thought it would happen, but it just did. We just experienced the world\u2019s first large-scale crypto bank run,\u201d the blog post says.<\/p>\n

\u201cAround 10am UTC on 16-June-2021, we noticed some whales began to remove liquidity from IRON\/USDC, then sold TITAN to IRON and then IRON to USDC directly to liquidity pools instead of redeeming IRON, which caused the IRON price off-peg. TITAN dropped from 65$ to 30$ in 2 hours, which later recovered in 1 hour to 52$ and IRON fully recovered its peg,\u201d the post mortem adds.<\/p>\n

Following the recovery, the Iron Finance team noticed a few hours later that a \u201cfew big holders started selling again.\u201d The Iron Finance project members said \u201ca lot of users panicked\u201d and the entire situation caused a \u201cnegative feedback loop.\u201d<\/p>\n

TITAN\/USD chart.<\/p>\n

\u201cAt some points, the price of TITAN became so low, close to 0 actually, which caused the redeem contract to revert the redeem transactions. We already queued the fix for this, so people can redeem again at 5pm UTC,\u201d the team noted. The Iron Titanium project members added:<\/p>\n

What we just experienced is the worst thing that could happen to the protocol, a historical bank run in the modern high-tech crypto space. Remember that Iron.finance is a partially collateralized stablecoin, which is similar to the fractional reserve banking of the modern world. When people panic and run over to the bank to withdraw their money in a short period, the bank may and will collapse.<\/p>\n

<\/p>\n

A Number of Iron Finance Investors Lose Big<\/h2>\n

Commentary is littered all over Twitter and Reddit forums about the bank run, as it seems a lot of Iron Finance project investors lost money, according to a myriad of testimonies.<\/p>\n

\u201cMy school fees [are] gone,\u201d one individual tweeted<\/a> on Wednesday. \u201cI had $3,000 there and I\u2019m left with $0.50. What is left for me to withdraw??!!! This isn\u2019t fair! Whoever caused this should be found punished\u2026\u2026 What am I going to do now?\u201d the individual added.<\/p>\n

\u201cI lost all my Matic from pool Matic\/TItan,\u201d another person tweeted<\/a>.<\/p>\n

Others were not so sympathetic toward the investors who lost money, as a number of people repeated the age-old adage about investing only what you can afford to lose. One specific tweet response to the Iron Finance token thread said<\/a>:<\/p>\n

First rule of investing (especially in defi): don\u2019t put in what you can\u2019t lose. You really have no one to blame but yourself.<\/p>\n

As far as the Iron Finance project team is concerned, the maintainers say they have \u201clearned a great deal from this incident and while nothing could be fixed in the current system, we will continue our journey with more products in the future.\u201d <\/span><\/p>\n

Currently, the team plans to conduct an \u201cin-depth analysis of the protocol\u201d in order to grasp what happened during this unusual event. The post mortem also contains a quote from an Iron Finance investor and the founder of Finder.com.au, Fred Schebesta. <\/span><\/p>\n

\u201cThere was no rug pull or exploits,\u201d said Schebesta. <\/span>\u201cWhat happened is just the worst thing that could possibly happen considering their tokenomics,\u201d the Iron Finance blog post concludes. <\/span><\/p>\n

What do you think about the Iron Finance bank run? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nNews, Bank Run, DeFi, Finance, Fred Schebesta, Iron, Iron Finance, Iron Finance project team, Iron Investors, Iron Titanium, Iron Token, Liquidity, Liquidity Pools, post mortem, Social Media, USDC<\/p>\n","protected":false},"excerpt":{"rendered":"

The Iron Titanium token (TITAN) value has quaked a great deal after the project suffered from what the team called \u201cthe world\u2019s first large-scale crypto bank run.\u201d After touching a high of $64 per token on Wednesday, the project slid to near zero and remained worthless on Thursday afternoon. Iron Finance Claims Project Suffered from…<\/p>\n","protected":false},"author":0,"featured_media":8402,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8401"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8401"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8402"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}