Blackrock, the world’s largest asset manager, and hedge fund titan Citadel Securities have denied any involvement in the demise of TerraUSD (UST) and TerraUSD (LUNA). Furthermore, cryptocurrency exchange Gemini denied making the bitcoin loan that led Terra to fail.
Indeed, following the collapse of terra ($LUNA) last week after the algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar, speculations circulated that Blackrock, Citadel Securities, and Gemini were to blame.
According to reports, Blackrock and Citadel Securities borrowed 100,000 BTC from the Gemini cryptocurrency exchange and traded 25% for UST. The two corporations subsequently unloaded UST and BTC, causing both cryptocurrencies’ values to plummet.
Gemini, a cryptocurrency exchange, also disputed the reports. The firm 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.
Citadel Securities, a hedge fund powerhouse, likewise stated that it had nothing to do with the UST stablecoin’s demise. According to a firm spokeswoman, the company “does not trade stablecoins, including UST.” Blackrock also disputed the rumors, saying:
Rumors that we played a role in the collapse of the UST are categorically false. In fact, BlackRock (NYSE:BLK) does not trade USTs.
Circle Internet Financial Ltd, the creator of the stablecoin USD Coin, was recently supported by the asset management (USDC). With a market valuation of approximately $50 billion, Circle’s stablecoin is presently the fourth biggest cryptocurrency.
