Iron Finance (TITAN)
A partially collateralized stablecoin protocol on Polygon whose share token TITAN collapsed from ~$64 to near zero on June 16, 2021 in what the team called crypto's 'first large-scale bank run.' Its TVL fell from ~$2B; investor Mark Cuban said he was among those hit.
Also known as: Iron Finance, TITAN, IRON
Summary
Iron Finance ran a partially collateralized stablecoin (IRON) on Polygon and Binance Smart Chain, backed by USDC and its own share token, TITAN. On June 16, 2021, large holders sold TITAN, IRON lost its dollar peg, and a feedback loop in the redemption mechanism drove TITAN from about $64 to effectively zero within hours; the protocol's value fell from roughly $2 billion. [1][2]
Mechanism and aftermath
The team's post-mortem described "the world's first large-scale crypto bank run": as panicked users redeemed IRON, newly minted TITAN flooded the market and a time-weighted price oracle widened the gap between spot and redemption prices, accelerating the collapse. The episode drew extra attention because billionaire Mark Cuban had praised the protocol days earlier and said he was hit; he subsequently called for stablecoin regulation. A U.S. Federal Reserve note later studied the run. [1][2][3]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (3)
- Iron Finance Says It Suffered Crypto's 'First Large-Scale Bank Run' — CoinDesk
- Iron Finance Implodes After 'Bank Run' — The Defiant
- Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel — U.S. Federal Reserve
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
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