Was Mark Cuban Really Hit By A Crypto Rug Pull?

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Last Updated on 18 June 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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A rug pull is a term in the cryptosphere which signifies the exhaustion of a hyped up project. In short it goes like this:

Many influencers try to hype a certain coin or project to drive up the price. As soon as the price hits a certain target, the rug is pulled from underneath the investors who got in later and the floor falls from underneath their feet.

This is mostly done via preferred coins held by founders. Assume that there are 50 million coins in circulation, but the founder forgot to mention that he holds another 25 million coins on the side which he can throw on the market any time.

These somewhat preferred coins (a term which could be referenced to the preferred shares that Mark Zuckerberg holds in Facebook for example) therefore hold great sway over the price movement.

The most famous instances in the past year where the Sushi debacle last summer (remember Chef Nomi when the DeFi hype took over cryptoland?) and the Shiba Inu rug pull that none other than Vitalik Buterin did.

In this last case, we can’t technically speak of a rug pull as the Shiba Inu cryptocoin developers had donated 50% of the coin’s total value to Vitalik in the first place. The fact that the Ethereum founder decided to donate a major part of his coins to an Indian Covid charity caused a serious price drop, but cannot be called a rug pull per se.

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Titan rug pull

Mark Cuban, the star of the TV show Shark Tank and an eager crypto investor, had apparently gotten caught up promoting the unknown cryptocoin Titan. When it was rug pulled yesterday, the price crashed from $60 to wait for it $0,00017.

Reddit ran an update on the news, stating:

The price has crashed to $0.00017. Yup, from $60 to $0.00017 in about 4 hours. Absolute disaster.

When cryptofans on Twitter pointed that Cuban might have been involved in a possible rug pull, the billionaire quickly set the record straight though, responding:

I got hit like everyone else. Crazy part is I got out, thought they were increasing their TVL enough. Than Bam.