After losing $200,000 in cryptocurrency investments, Mark Cuban learnt his lesson the hard way

<p>According to The New York Times, billionaire investor Mark Cuban learnt a crucial lesson about cryptocurrencies the hard way.</p> <p>The Shark Tank star and crypto guru recently claimed that he had dabbled with yield farming, in which he purchased a cryptocurrency called titan and lent it back to the platform, basically providing liquidity and profiting from interest. The token then crashed.</p> <p>In retrospect, he told the New York Times, "As a liquidity provider, I made money, but as a speculator, I lost money. I should've done more research on it."</p> <p>Insider reported in June that the DeFi token dropped from $60 to zero in one day as crypto whales liquidated their holdings, causing panic selling. Cuban tweeted at the time, "I was struck like everyone else," but he didn't say how much. The Times has since learned that he sustained a nett loss of around $200,000.</p> <p>According to the story, his takeaway from the episode is that investing in a cryptocurrency that doesn't have a reason to exist is a bad idea. When the coin crashed, Cuban told Bloomberg that he was "rugged," a reference to a crypto scam known as a rug pull, but that it was his fault since he was "lazy."</p> <p>"The trouble about de fi plays like this is that it's all about revenue and arithmetic, and I was too lazy to do the math to figure out what the essential KPIs were," he explained to Bloomberg in an email.</p> <p>A rug pull is a swindle in which the creators of a token pay out their profits after launching the cryptocurrency project. The number of scams has increased in tandem with the growth of the cryptocurrency sector. According to one estimate, rug pulls, which are primarily tied to DeFi tokens, will cost investors roughly $3 billion in 2021.</p> <p> </p> <p><a href='http://paypal.me/cryptopirates'>Support us!</a></p>