BlackRock, the world’s largest asset manager, and hedge fund giant Citadel Securities have denied claims they played a role in the downfalls of terrausd (UST) and terra (LUNA). Additionally, cryptocurrency exchange Gemini has denied providing the bitcoin loan that caused terra to crash.
BlackRock, Citadel Securities, Gemini deny rumors
Blackrock, Citadel Securities and Gemini are rumored to be involved in the fall following the collapse of terra (LUNA) after the algorithmic stablecoin terrausd (UST) lost its peg to the dollar this week. The three companies quickly denied the allegation.
BlackRock and Citadel Securities rumored to borrow 100K bitcoin From cryptocurrency exchange Gemini and exchange 25% for UST.The two companies then sold UST and bitcoinsending the prices of both cryptocurrencies plummeting.
On Wednesday, the official Twitter account of BlackRock, the world’s largest asset manager, tweeted:
Rumors that we played a role in the debacle of UST are absolutely false. In fact, BlackRock doesn’t trade UST.
The asset manager recently backed Circle Internet Financial Ltd., the issuer of another stablecoin called USD Coin (USDC). Circle’s stablecoin is currently the fourth-largest cryptocurrency with a market cap of nearly $50 billion.
Cryptocurrency exchange Gemini also denied the rumors. The company tweeted on Wednesday:
We know there was a recent story suggesting that Gemini did 100K bitcoin This reportedly led to a sell-off in LUNA. Gemini does not offer such loans.
Hedge fund giant Citadel Securities similarly said it had nothing to do with the collapse of the stablecoin UST. A representative for the company told Bloomberg that the company “does not trade stablecoins, including UST.”
March, Citadel Securities said It plans to engage in cryptocurrency market making in the coming months.
The crash of LUNA shook the crypto market. At the time of writing, the cryptocurrency’s price has fallen to $0.035, down nearly 100% in the past 24 hours. Meanwhile, UST fell to a low of $0.30 on Wednesday but has since rebounded to its current level of $0.60.
Do you think BlackRock, Citadel Securities and Gemini played a role in terra’s collapse? Let us know in the comments section below.
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