DeFi projects typically issue coins as a way to raise money.
Thus far, it appears that the titan crash was not the result of a scam known as a “rug pull,” where creators drain a pool of cash and make haste with the spoils.
When crypto whales began dumping their titan stake as it hit its apex, the price for the stablecoin, iron, and the token, titan, spiraled downward in tandem.
Because cryptocurrencies like ether and bitcoin exist on their own unique blockchain, they are referred to as layer one currencies.
Ultimately, Spiegel points out that anyone, be they legitimate technologists or scammers, can launch new projects this way.