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The World’s First Large-Scale Crypto Bank Run



June 18, 2021       /       Unchained Daily       /       Laura Shin

Daily Bits ✍️✍️✍️

  • Wedbush Securities joined the Paxos Settlement Service, which settles US securities using blockchain tech
  • NFT real estate sold for $913K in Decentraland
  • The Bitcoin Mining Council hosted its first meeting yesterday
  • The National Republican Congressional Committee is partnering with BitPay to accept donations in cryptocurrency (Axios)
  • World Bank denied El Salvador’s request for assistance in making Bitcoin legal tender
  • Circle is partnering with to provide users stablecoin capability 
  • TRM Labs, a blockchain analytics firm, raised a $14M Series A

What Do You Meme?

What’s Poppin’?

According to data from Coin Gecko, IRON Titanium Token (TITAN) crashed from $60 to just a sliver above $0 in less than 24 hours on Wednesday. 

TITAN is linked to the IRON Finance project, which mints so-called stablecoins by locking in a combination of 25% TITAN and 75% USDC. CoinDesk reported that QUOTE “when new IRON stablecoins are minted, the demand for TITAN increases, driving up its price. Conversely, when the price of TITAN falls dramatically, as was the case on Wednesday evening, the peg becomes unstable.” 

In a post-mortem blog post, Iron Finance described the event as “the world’s first large-scale crypto bank run.” 

As TITAN began freefalling from $60, so did the pegged value of IRON, falling to under 70 cents  as a bank run was initiated on TITAN, creating, as Fred Schebesta, founder of and an Iron Finance investor, told CoinDesk, “a crypto vortex of money.” Iron Finance explained this vortex as a “negative feedback loop” and “the worst thing that could happen to the protocol,” where panic selling led to more TITAN creation which drove TITAN prices down, which caused more panic… 

For context, at one point, Iron Finance had $2+ billion in value locked into the network. That number has dropped to $238 million as of press time.

TITAN and IRON Finance were available on Polygon and Binance Smart Chain. Mark Cuban, billionaire investor and avid DeFi user, recently admitted to being a liquidity provider on Quickswap, an automated market maker native to Polygon, for the DAI/TITAN trading pair (in a blog post on DeFi that I recommend in my daily newsletter earlier this week). 

In response to a tweet referencing the TITAN crash as a rug pull, Cuban replied that he “got hit like everyone else.”

Later, in an email to Bloomberg, he called for regulation in the industry “to define what a stable coin is, and what collateralization is acceptable.” 

Preston Byrne, partner at Anderson Kill, tweeted back at him: 

Recommended Reads

  • While TITAN and IRON unequivocally failed as a stablecoin, Messari’s Ryan Watkin’s believes that all algo stablecoins are not minted equally:

  • Yuan Han Li, a researcher at Blockchain Captial, on his recommendations and guidance for DAOs regarding treasuries and balance sheets:

  • Larry Cermak, director of research at The Block, tweeted a quality brain dump on the state of crypto:

On The Pod…

Polygon: The Layer 2 Solution Doing 8 Times as Many Transactions a Day as Ethereum

Jaynti Kanani, cofounder and CEO of Polygon, discusses why the layer 2 solution has seen so much success during a down crypto market. Show highlights:

  • what factors have led to Polygon’s and MATIC’s impressive performance YTD

  • how Polygon is scaling Ethereum

  • what types of projects are taking off on Polygon

  • how Polygon is attempting to address the issue of layer 2 composability

  • how Polygon plans to use its latest funding

  • why Jaynti is confident Polygon will still be necessary after ETH 2.0 launches

Book Update

My book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, is now available for pre-order now.

The book, which is all about Ethereum and the 2017 ICO mania, comes out Nov. 2nd. Pre-order it today!

You can purchase it here:






After a predictably underwhelming September in the crypto markets, history was made in October as BTC hit new all-time highs. 

As foreshadowed in last month’s Crypto On-Chain Digest, End of Summer Sale, data indicates that a supply shock (driven by long-term holders) contributed to BTC’s rise to record levels.

In Kraken Intelligence’s latest Crypto On-Chain Digest, S H O C K T O B E R, the team further analyzes the impact of BTC’s supply shock, how whales and long-term holders are leading the charge and why on-chain metrics suggest that the bull run still has significant upside.

HODLer’s Paradise

BTC’s HODL Waves, an indicator that provides insight into holding and spending behaviors, paints a picture of a market that isn’t ready to sell yet. Long-term holders have failed to react to September’s weakness or October’s strength — and instead continue to accumulate.

Since late May, ‘young coins’ (those moved within six months) have been maturing as they’re increasingly being held for the long-term. The percentage of young coins has dropped by 11.8 points to lows that haven’t been seen since November 2018, when BTC was trading at ~$5,700.

Diamond-Handed Miners

It may come as a surprise that miners, too, appear to be holding for the long-term. 0-hop supply is a simple metric to determine mining pool behavior, as it tells us whether the validators of the Bitcoin network are holding the coins they’ve mined. It assumes that coins that have not moved (or ‘hopped’) at least once have not been sold or paid out to miners.

The 0-hop supply has risen by almost 50% since September, and the leading North American pools have publicly reported holdings of more than ₿20.4k ($1.3B). On the other hand, 1-hop supply (generally attributed to small miners who mine using a pool) shows that small miners took some profits. However, now that this trend appears to be reversing, this supply shock could be exacerbated as these players stop selling, too.

Bulls on Parade

A supply shock, spurred on by long-term holders, whales, miners and increased network demand put BTC in a strong position to trend higher. But we need to turn to quantitative indicators to get a better feel for its place in the current bull run. 

The SOPR (Spent Output Profit Ratio) attempts to give us an answer by approximating whether market participants are selling at a profit or loss. Given a recent bounce, and going off historic movements from September 2020, it would appear that strong support is established at the ~$42,000 level. It also confirms that the recent pullback was a healthy retracement, and not a full-blown reversal.

The MVRV (Market-Value-To-Realized-Value) Z-Score estimates whether BTC is in oversold or overbought territory. It currently sits below the halfway point between these two thresholds, suggesting that there’s still room for BTC to run.

Get the full story in Kraken Intelligence’s report, S H O C K T O B E R:

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Shiba Inu: The Big Explosion, The Drop & The Future Impacts



Shiba Inu, the mysterious meme coin, has gained serious attention this past weekend after a 45% surge. Created by anonymous dogecoin-ally Ryshoi Shiba, Shiba has slowly gained momentum since the beginning of the summer.

What’s Next For Shiba Inu?

With Robinhood approving more then 250,000 applications for Shiba Inu access, it will definitely serve as a point of potential for the token. Shiba gained strong upside momentum after it managed to get above the key resistance level at $0.000040 – during which it almost hit the $0.000041 mark, before dropping back down to 0.000038. This is the highest peak the coin has seen in its short, but graceful climb, until it’s continued surge over the past several days. For early holders, this is a great sign of the future for Shiba, as it close the market cap gap on rival dogecoin. According to CoinMarketCap, Dogecoin’s current market cap is $33.6 billion, while Shiba Inu’s market cap has now surpassed the $15 billion level. Doge, meanwhile, also saw some gains this past weekend with a mild jump.

Related Reading | Elon Musk Reveals How Much He Owns Of Dogecoin Rival, Shiba Inu

SHIB: Shiba Inu has currently hit a high and continues to be on a rapid tear. | SHIB-USD on

The aforementioned onboarding of potential Shiba Inu holders onto Robinhood will likely add new crypto consumers into the ecosystem. Robinhood aims to allow everyday people to invest monies big and small into Wall Street stocks, and now crypto. Rumors have been surfacing about the team and increased support across platforms and exchanges, all while Shiba Inu is already support across digital wallets offered by the likes of Coinbase and Voyager – both top dogs in mainstream crypto investment apps.

The Attention-Grabber

Shiba Inu even gained attention of Telsa CEO and Dogecoin godfather Elon Musk recently, when he tweeted a response about not owning any of the coin himself. People would say Musk is often a troll online when it comes to talking about certain topics and tokens, and how the value of these coins can fluctuate after his tweets. Others may suggest that the implications of his tweets are temporary when it comes to the long-term price movements of these tokens. 

Can Shiba Inu break out and have an end of the quarter rally like the bulls hope, or will it peak and stay steady as the year caps out? This token will be one to keep an eye out for if you are watching to see what will catch on next. With substantial media attention and spotlight, Shiba looks to take advantage and find a listing on Robinhood and other platforms. Rumors have been bubbling that updates regarding Robinhood’s status with Shiba Inu could come as early as the end of this week. 

Related Reading | Why Citi Is “Slowly” Building A Crypto Infrastructure, CEO Says


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Tether Partners with Notabene to Battle Crime and Money Laundering



Tether, the company behind the largest stablecoin by market capitalization, USDT, has announced that it will be using Notabene to ensure compliance with anti-money laundering laws. The blockchain will be used to develop an end-to-end solution that will bring compliance with crypto Travel Rules.

Tether has announced that it will start testing the applications of Notabene to curb money laundering and criminal activities facilitated by cross-border transactions by VASP platforms.

Test Crypto Use Cases

The report also stated that Notabene would enable Tether to test the use cases of crypto in a collaborative but low-risk environment. Through Notabene, Tether will assess solutions provided by Notabene to understand how it can communicate client information to VASPs safely and securely.

The CCO of Tether, Leonardo Real, commented on this development saying,” As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them. Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels to create better services for customers globally.”

Virtual asset service providers have now been classified under the same category as regulated financial institutions. Therefore, these providers are required to comply with the “travel rule” that requires them to exchange customer information with each other for a specific timeframe.

Through the travel rule, countries and VASPs can curb the use of crypto assets for money laundering and terrorism financing. It will also ensure that clients on the platform can abide by the set sanctions.

Protect Clients through Transparency

Real further stated that Tether was proud to be the stablecoin leader in creating a positive impact and helping to protect clients. The report further noted that Tether had established a strong presence in the global crypto sector.

The CEO of Notabene, Pelle Braendgaard, also noted that the platform was eager to help Tether work with VASPs to bring compliance. This would bring a safe and regulated framework to the cryptocurrency space. Through Notabene’s solution, Tether will better manage counterparty risk and bring the best experience to its clients.

Your capital is at risk.

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