Again, It was shocking news in the market and many people gets panic after listening these news. Iron Titanium token (TITAN) – the share token of a decentralized finance (DeFi) protocol that was once worth $2 billion – has fallen to near zero in just few hours.
It’s anything but a situation that we frequently see; $ 60 to $0 in less than 24 hours is ludicrous. As of late, Titan Token, a DeFi protocol, has fallen radically from the ATH of $60. The token was delicate fixed to the dollar and was likewise accessible on Binance smart chain and Polygon. And surprisingly however the coin was advanced as a steady coin, there isn’t anything so about it. Very nearly 20 days back, it was exchanging at 20 cents and figured out how to reach $60. Also, presently it is back again at 40 cents.
What exactly happened?
The colossal pump that happened as of late had many holding on to book their benefits. There was a huge piece of cash stuck to the token from investors who began at the bottom. They are the ones who reclaimed at the top, and the value began to fall. What’s more, as the value began to plunge, individuals began to sell as they needed to book their profits as well. Thus, this consistent offering drove the cost to the ground.
A few issues that were the principle explanation for this specific price are the compelled liquidity, small market cap, and no locking period. The TITAN token wasn’t adequately skilled to oversee a particularly colossal bull run and steady selling. This crash was an enormous stun in any event, for the ones who were advancing the token. I’m discussing about Mark Cuban, who gabbed about Titan Token. He additionally reportedly lost about $8 million in the equivalent.
How to avoid such losses?
Above all else, I would advise against putting resources into something that is moderately new and has a small market cap. The possibility of these things happening is high in such cases. Simultaneously, if you are investing any amount into something that unsafe, it’s critical to have a stop loss set up, contingent upon your resilience. You clearly would not have any desire to rest with $1 million in your account and get up toward the beginning of the day to a couple of dollars.
Well said and useful information !