What is happening with the crypto asset 'TITAN' that crashed to a price of 1 / 3.5 billion in one day?
The price of the crypto asset ' TITAN ' plummeted to 1 / 3.5 billion in one day. The management team is calling for the suspension of transactions and is working to determine the cause of the crash.
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TITAN, which crashed this time, is a token to secure the value of the crypto asset 'IRON'. 'In the encryption assets of unsecured, the price can not be settled when you crash,' an official in the document of IRON and described are, in order IRON is to ensure its own value, IRON a stable coin of ' USD Coin (USDC ) ”And introduced a mechanism that can be redeemed by combining TITAN, which is a unique token, so that it can be redeemed as“ USDC of 75 cents and TITAN of 25 cents per IRON ”.
It has been pointed out that the mechanism by which IRON can be redeemed with USDC & TITAN may collapse when the value of IRON falls below $ 1.
Now what worries me is the opposite scenario. When $ IRON <$ 1, the opposite arbitrage opens up. It becomes profitable to buy $ IRON for <$ 1, and then redeem it for ~ 0.72 USDC and the rest in $ TITAN . Someone doing this likely will market sell that $ TITAN for USDC— Z80Ðev (@ z80dev) June 14, 2021
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TITAN chart on CoinGecko, it reached a record high of $ 64.04 around 2:00 pm on June 16, 2021, and then $ 0.000000018083 around 2:00 am on June 18, 2021. You can see that the price has plummeted to 1 / 3.5 billion.
Also, when checking the
code responsible for the redemption part of IRON is 'require (_share_price> 0,' Invalid share price ');'. The price of TITAN is assigned to '_share_price' in this, but the price of TITAN is now $ 0 and the comparison operator 'greater than 0' is used instead of 'greater than or equal to 0'. Due to the overlap, the redemption process did not work.
As mentioned above, IRON has a mechanism that allows you to redeem '75 cents USDC and 25 cents TITAN per IRON' even if the price crashes. However, according to one IRON trader, the
In response to this situation, the IRON management team commented, 'Since the price of TITAN has dropped to 0, it cannot be redeemed. You will have to wait 12 hours before it can be redeemed again.'
Since the price of titan has fallen to 0, the contract does not allow for redemptions.— IRON Finance (@IronFinance) June 17, 2021
We will need to wait for 12 hours for the timelock to pass before USDC redemptions are possible again.
In addition, the management team stated on the official website, 'Please do not trade TITAN and IRON. We have not been hacked or taken away,' and released the analysis results regarding this crash. I promise.
in Note, Posted by log1o_hf