Iron Finance Token Slips Near Zero at $64 After 'Large-Scale Crypto Bank Run'

The value of the Iron Titanium token (TITAN) plummeted after exposure to what the project team called "the world's first large-scale crypto bank operation". After hitting $64 per token on Wednesday, the project fell close to zero and was worthless on Thursday afternoon. Demir Financing Project Suffers 'Bank Run' The world of decentralized finance (defici) is exciting, but it also carries huge risks from the misuse of smart contracts, flash loans and alleged bank operations. This was the case for the Iron Finance project, as the team's local token lost all its value within hours. On Wednesday, the Iron Finance team announced what happened on Twitter, and an autopsy investigation followed on Thursday. “Dear community, please withdraw cash from all pools. "We will share an autopsy once we get a better understanding of this bank run," the official Twitter account said on Wednesday. “USDC collateral can normally be used for redemption,” the Twitter account added. Of course, Iron Finance's protocol team was criticized right after the tweet and people were dissatisfied. The autopsy that Iron Finance did the next day explains how the project suffered: "We never thought it would happen, but it did. We launched the world's first large-scale crypto. we just experienced the bank run," says the blog post. “At around 10:00 UTC on June 16, 2021, we noticed that some whales started removing liquidity from IRON/USDC, then selling TITAN to IRON and then IRON directly to liquidity pools instead of trading IRON to IRON, causing the price of IRON to drop. pin. TITAN dropped from $65 to $30 in 2 hours, which then went up to $52 in 1 hour and completely recaptured the IRON needle,” he adds. After the recovery, the Iron Finance team realized after a few hours that “a few big investors had started”. Members of the Demir Finans project said that "many users panicked" and the whole situation resulted in "negative fees".

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