Billionaire Mark Cuban believes that the real lesson that can be taken from the implosion of algorithmic stablecoin protocol Iron Finance is that the industry needs more oversight.
The Dallas Mavericks owner told Bloomberg that it’s up to regulators to define the term “stablecoin” and set out the terms of collateralization:
As reported by U.Today, Iron Finance’s Titanium (TITAN) token—which was mentioned by Cuban in his recent blog post—collapsed nearly 100 percent earlier today following a “bank run.” The undercollateralized Iron stablecoin lost its peg.
There should be regulation to define what a stable coin is and what collateralization is acceptable. Should we require $1 in us currency for every dollar or define acceptable collateralization options, like us treasuries or?
The “Shark Tank” host says that his investment in the project “wasn’t so big.”