re: Official CryptoTalk Thread

Most people are well past this, but I was cleaning up my Discord and Telegram channels and saw this Medium adrticle posted in the Iron Finance Telegram.. It's fascinating to me.

LINK

Turns out it wasn't really a "bank run" like the IF team tried to claim. While it still doesn't look like they were necessarily malicious actors or rug pulling, they are culpable for negligence at the very least.

TL;DR - Someone did a frick ton of homework, digging through IRON and TITAN transactions, found someone buying & redeeming millions of IRON at a time, selling the TITAN, and doing it over again. This was possible because the TWAP of the oracle the IF team was using was set to 10 minutes, so there was a ton of time for price reflections to be inaccurate when IRON dipped below $1. When they started dumping hard, IRON stayed below $1 and allowed for some smart individual to cause it all to continuously crash while profiting to the tune of hundreds of millions.

Where the Iron Finance team is culpable is they were warned by the guy doing the digging that someone was doing this, they implemented some potential fixes and things stabilized (this was the crash from ~$64 to ~$30), but for some unknown reason they reversed the changes and the activity resumed. Certainly smells fishy. To make it even more fishy, the person moving millions transferred it through multiple intermediary wallets before getting to its final destination. There's no direct evidence that the team did this, but it's not a good look.




What's most crazy to me is that this could've been done for small amounts for.. well, forever, and probably wouldn't have been caught, or would've taken forever. Some whale saw an opportunity to immediately walk away with hundreds of millions and took it, or the dev team fricked everyone.