When the Crypto Titan Disintegrates Becomes a Warning for Bitcoin

The titan asset became the attention of market participants because its price dropped to US$ 0 last Thursday (17/6/2021). On Sunday (27/6/2021) Titan's price was at US$ 0.00000000456.
Titan is a DeFi token created by Iron Finance, which operates on the Polygon network. Titan's collapse also took a toll on veteran investor Mark Cuban.

"I'm devastated, just like everyone else," Cuban said on Twitter.

Cuban told CNBC International that Titan's collapse to US$0 was due to a poorly run business. According to him, people fail to understand that DeFi is a business like any other.

Later on the same day as the Titan sinking, Bitcoin fell only 2%. Although recently the price has fallen deeper, where Bitcoin had fallen to below US $ 30,000/coin on June 22, or five days after the titan burned.

However, Titan's movement is said to not be used to predict Bitcoin. Because, Titan is not a cryptocurrency but a DeFi token.

Furthermore, Bitcoin has its own blockchain, where the cryptocurrency is in layer one. While tokens like titan are on top of layer one blockchain, their characteristics are more similar to securities, which are related to fundraising, as well as giving voting rights to their owners.

One of the things that makes a token like titan fragile is that it doesn't have its own blockchain. Moreover, the Polygon network is a new protocol released this year.

"You can't compare a project that has just developed with another blockchain that is super, super structured and has been around for a long time," said Chief Operating Officer at UnifyIT, Jorge Cortes, a specialist blockchain-based project development organization.