Collapse of Terra (LUNA): Blackrock, Citadel, Gemini deny their involvement


© Reuters.

Investing.com – The world’s largest asset manager, Blackrock, and hedge fund giant Citadel Securities have denied claims they played a role in the downfall of (UST) and (LUNA). Additionally, cryptocurrency exchange Gemini denied that it made a bitcoin loan that caused terra to collapse.

Indeed, following the collapse of terra (LUNA) after the algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar this week, rumors swirled that Blackrock, Citadel Securities and Gemini had some responsibility for this fall.

Blackrock and Citadel Securities are rumored to have borrowed 100,000 from the Gemini cryptocurrency exchange and exchanged 25% for UST. The two companies then dumped UST and BTC, crashing the prices of both cryptocurrencies.

Cryptocurrency exchange Gemini also denied the rumors. The company tweeted:

We are aware of a recent story that suggested that Gemini made a loan of 100K BTC to large institutional counterparties which would have resulted in a selloff in LUNA. Gemini made no such loan.

Hedge fund giant Citadel Securities also said it had nothing to do with the collapse of the UST stablecoin. A company representative stated that the company “does not trade stablecoins, including UST.” Blackrock also has denial rumors:

Rumors that we played a role in the collapse of the UST are categorically false. In fact, BlackRock (NYSE:) does not trade UST.

The asset manager recently backed Circle Internet Financial Ltd, the issuer of the stablecoin (USDC). Circle’s stablecoin is currently the fourth largest cryptocurrency with a market capitalization of nearly $50 billion.





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