The global market maker Citadel Securities and the asset manager Black stone denied any involvement in the collapse of the algorithmic stablecoin TerraUSD (UST).
The allegations came after a theory that Citadel Securities and BlackRock carried out a coordinated attack on UST and made a huge profit from its collapse spread like wildfire on social media platforms.
In a statement to Bloomberg, a Citadel Securities representative said the company was not involved in this situation and that “trading in stack coins, including UST, is not within its business.”
BlackRock also denied any involvement:
“Rumors that BlackRock played a role in the collapse of UST are categorically false,” the spokesman said. Logan Koffler in an email statement.
On May 8, UST slowly began to lose its bond to $ 1 after a wave of divestments in the crypto market. The algorithmic stablecoin has not managed to regain parity, exacerbating the lack of market confidence, leading to massive withdrawals Terra’s Anchor Protocol, where over 12 billion USTs had been blocked.
As mentioned, a number of conspiracy theories immediately began circulating in the crypto community, speculating on what might have led to the loss of the UST stick.
While some argued that the problem arose due to a structural complication related to the nature of the stablecoin, others blamed the large investment firms, saying they staged a coordinated attack.
One of these theories includes Citadel Securities and BlackRock, claiming that these two entities took out a huge Bitcoin loan from the crypto exchange. twinthat they would then have traded these BTC for UST before dumping their BTC and UST after opening a short position.
This assumption has been shared by a number of veterans of the crypto industry on social media, including Charles Hoskinsonfounder of Cardano (ADA), in a now deleted tweet.
Gemini, for its part, denied having issued such a loan.
“We are aware of a recent rumor suggesting that Gemini lent 100K BTC to major institutional counterparties, resulting in a LUNA sale,” he said. declared the exchange on Twitter and adds that:
“Gemini has not provided such a loan.”
Nevertheless, Terra’s betting token LUNA and its decentralized stablecoin UST have resumed their downward movement with no sign of reaching the bottom.
LUNA – which is now number 89 on the market by market value – is trading at $ 0.18, down 96.6% in the last 24 hours and almost 100% in one week. The coin has also fallen 99.9% from its record high of $ 119.18, which was recorded just over a month ago.
The ecosystem’s algorithmic stablecoin also failed to regain its predicted $ 1 point, despite a 45% increase over the past 24 hours. Right now, UST is trading at $ 0.519 after falling 48.2% over the past week.
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