Mark Cuban reveals his biggest cryptocurrency blunder and how much he lost
When it comes to crypto investing, no one is immune to making stupid mistakes, and Mark Cuban is an example of this. The millionaire subsequently admitted that he, too, had made a costly investment blunder. Cuban opened out to the New York Times about how a lack of investigation led to him losing a lot of money on a new cryptocurrency in a recent piece.
Mark Cuban had a $200,000 loss
The TITAN token was a decentralized finance (DeFi) token that made headlines in the space towards the end of last year. At the time, nothing was known about DeFi initiatives, and investors were pouring money into the field in the hopes of quick and huge profits. One method investors made money was by providing liquidity for a specific token, which Cuban did. However, you can also invest directly in the tokens themselves.
Cuban had promoted the token and, in turn, had invested in it. He revealed to the New York Times that, while he made money as a liquidity provider, he ultimately lost a lot of money as an investment. A regrettable occurrence that he blamed on his lack of relevant research. “I profited as a liquidity source and lost money as a speculation,” Cuban admitted. “I should’ve done more research on it.”
He explained that he had gotten complicit and had neglected to perform due diligence, such as reviewing the revenue and performing the math. “The trouble about Defi plays like this is that it’s all about revenue and arithmetic, and I was too lazy to do the math to figure out what the essential KPIs were,” Cuban explained to Bloomberg.
When the idea collapsed, Cuban lost around $200,000 in total.
Titan’s Rise and Fall
Rug pulls are no longer a fresh notion, and the TITAN project was no exception. Rug pulls are a common DeFi scam in which the producers of a token dump a huge amount of the supply on its holders, pocketing the profits and leaving investors with useless bags. It was one of the hottest DeFi tokens at its peak as investors rushed to catch the train of gains they were witnessing.
With sponsorship from renowned personalities such as Mark Cuban, the token had developed to the point that it was worth $60 per token at one point. This would prove to be the beginning of the end for the TITAN cryptocurrency’s developers, who ‘rugged’ the project not long after.
Like the other investors who were left holding the TITAN tokens, Cuban had lost a lot of money. The price had plummeted to $0 as a result of investor panic selling.
