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Cuban Rugs

June 18th, 2021

In March, we interviewed Mark Cuban on the Delphi Podcast. The Shark Tank star dazzled us with remarkable insight into the DeFi landscape and we called the episode “The Billionaire Degen.”

That title proved to be quite prescient.

This week, Cuban made headlines for investing in Iron Titanium token (TITAN) and getting rekt as the price fell to near-zero. The TITAN token was a “balancer token” or “share token” created by Iron Finance, for its partially-collateralized algo stablecoin ecosystem. As TITAN lost its peg, it created a large-scale bank run.

In a way, it’s comforting to know even billionaire investors aren’t safe from the occasional rug pull.

Later, however, The Cube ruffled some feathers by commenting in Bloomberg that the Iron Bank snafu shows a need for stablecoin regulation. Obviously, this was met with some sharp criticism. Even Cuban himself admitted, “The thing about defi plays like this one is that it’s all about revenue and math and I was too lazy to determine what the key metrics are.”

Is this a moment for reflection within DeFi? ​Or is this a case of buyer beware? At first, we thought the latter, but if you’ve seen our conversation with Mark, he’s clearly a voracious student of crypto and had a front-row seat for prior tech cycles. Whether or not you agree, regulators are already saber-rattling with bills like The STABLE Act. In addition, Jerome Powell and Elizabeth Warren recently expressed concern over stablecoins in particular. It will be worth watching how the billionaire degen shapes the tenor of this coming debate.

In Delphi news, this week we published a new L2 Bridges Report, new Yield Strats for clients, and a week’s worth of can’t-miss Daily posts. On the podcast side, we sat down with founders from Chainflip and Showtime. Plenty of alpha to dig through over the weekend.

Stay degen,

Nick
@NpappaG

Here were the highlights from this week’s research:

[Delphi Daily] More Bitcoin Hopium, Yearn Won’t Stop, And Polygon DEX Volume

  • After a run up past $41,300 on Tuesday — a potential run on stop loss hunt — BTC is down around 2% for the day and dragged the rest of the crypto market down with it. CHZ and SHIB are the biggest gainers of today thus far; LUNA, NEXO, and SNX are down the most.
  • Delphi Daily subscribers & clients can see the full brief here.

[Delphi Daily] Polygon’s Clout and Bitcoin Hopium

  • BTC and ETH had been ranging from the Asia session into the London session, with a short bout of weakness emerging at New York open. As mentioned in Monday’s daily, BTC currently sits near its range high and traders are awaiting confirmation of either bearish continuation or an uptrend over the next week.
  • Delphi Daily subscribers & clients can see the full brief here.

[Delphi Daily] Top Performing Layer Ones, Market Metrics, and Axie’s Sharp Growth

  • After multiple consecutive weekend dumps, this past weekend saw the bulls come out on top, indicating retail sentiment is recovering. BTC is at its current range high; a break down from here could spell fresh lows while taking out the high would confirm a continuation of the uptrend.
  • Delphi Daily subscribers & clients can see the full brief here.

[Yield Strats] Yield Strats #14

  • In this edition, we cover yield farming opportunities for Balancer on Ethereum, Dfyn Network on Polygon and Lixir Abracadabra on Ethereum.
  • Delphi Insights and Institutional subscribers & clients can see the full brief here.

Delphi Daily Of The Week

 

[Delphi Daily] Bitcoin’s Market Structure, Correlation to Gold, and Miner Revenue Mix

  • Crypto markets haven’t done anything notable today, with BTC and ETH up 1.5% each. Today’s edition looks into Bitcoin market structure, investor sentiment, and the network usage.

Get The Full Daily for Free

Featured Podcast

The Delphi Podcast Host and GP of Delphi Ventures Tom Shaughnessy hosts Simon Harman, the founder of Chainflip, a cross chain native AMM.  The two discuss Simon’s journey, the need for a cross-chain native exchange, competitive differences, timelines, economic security, value accrual for FLIP, concentrated liquidity, signature schemes, and much more!

 

As mentioned, we will continue to iterate on the design of our Delphi Debrief based on your feedback—so please let us know which section you enjoy the most and what else you’d like to see!

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