Though they potentially have more access to resources, even billionaire investors aren’t immune to risk when it comes to decentralized finance, or DeFi.
“I got hit like everyone else,” Cuban, owner of the Dallas Mavericks and an investor on ABC’s “Shark Tank,” tweeted on Wednesday.
At first, some in the crypto world speculated that this was the result of a rug pull, which is a type of scam where developers abandon a project and leave with investors’ funds. Iron Finance denied those claims. The project said in a blog post that the crash was due to a “bank run,” or panic selling, and the token’s algorithmic code.
Regardless, Cuban’s experience is a good reminder of how volatile and risky investing in crypto, and DeFi especially, can be. His takeaway: “Do your own research,” he told CNBC Make It.