Losing money on Iron Finance didn’t go so well for Mark Cuban as he now demands stablecoins to be regulated.
Billionaire Mark Cuban has said that there need to be strict regulations on stablecoins. Mark apparently lost a lot of money on the Iron Finance Protocol after getting involved in a supposedly ‘historical bank run.’ Iron Finance commented on the situation, stating that the relatively collateralized stablecoin was in for a ‘historical bank run,’ but the results of that didn’t go as planned, causing the IRON stablecoin to go off track. The results presented one of the biggest price drops as Native Token of Iron, named TITAN, saw an extreme crash. The price of the TITAN token dropped almost 100% in a couple of days, previously reaching and hovering at its all-time high price of $64.04.
During an interview with Bloomberg hosted on the 17th of June, Mark Cuban said that he is “lazy” and should have been more active in the research part. Cuban stated that working on DeFi requires a lot of work to be done on revenue and math, and he showed laziness in working out the critical key metrics of the situation, meanwhile also having doubts regarding the proper regulation of stablecoins. Mark said that stablecoins should be regulated, and there should be a proper way to set a collateralization rate that is accepted everywhere.
CEO of Kraken, Jesse Powell, posted some harsh words in a tweet in regards to the lazy behavior of Mark Cuban, saying that the problem with Mark is that he should have done the proper research and should not have put so much in on a questionable investment. Jesse continued by saying that Mark Cuban’s time has more importance than his money, so that is why this happened.
US Lawmakers have their eyes on stablecoins and are thinking of various ways to properly implement regulations on them. Back in December of 2020, a bill came into sight which said that all stablecoin dealers are required to have a banking charting and must agree with normal bank regulations. Jerome Powell from the Federal Reserve said that because there is a huge rise in the use of stablecoins, it needs to be looked into, and the proper regulations must be implemented accordingly.
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