The token, known as the IRON Titanium Token or TITAN, fell from over $60 on June 16 to a fraction over zero on Thursday morning, CoinGecko data shows.
The token is linked to Iron Finance, a group that runs the wider IRON Stablecoin project, which aims to avoid price volatility.
On Thursday, Fred Schebesta, founder of the Finder.com finance site and Iron Finance investor, told CoinDesk the sudden crash in TITAN was caused by panic-selling by "whales"—individuals who hold large amounts of a certain token.
He said: "TITAN's price went to $65 and then pulled back to $60. This caused whales to start selling."