Blackrock, Citadel, Gemini Deny Involvement in Terra Collapse – Featured Bitcoin News

The world’s largest asset manager, Blackrock, and hedge fund giant Citadel Securities have denied claims that they had a role in the fall of terrausd (UST) and terra (LUNA). In addition, crypto exchange Gemini has denied making a bitcoin loan that resulted in the terra collapse.

Blackrock, Citadel Securities, Gemini Deny Rumors

Following the collapse of terra (LUNA) after algorithmic stablecoin terrausd (UST) lost its peg to the U.S. dollar this week, rumors have been circulating that Blackrock, Citadel Securities, and Gemini had some part in the fall. The three companies quickly denied the accusation.

How To Get Free Crypto  

According to the rumors, Blackrock and Citadel Securities borrowed 100K BTC from cryptocurrency exchange Gemini and swapped 25% for UST. The two companies subsequently dumped the UST and BTC, crashing the prices of the two cryptocurrencies.

On Wednesday, the official Twitter account of Blackrock, the world’s largest asset manager, tweeted:

Rumors that we had a role in the collapse of UST are categorically false. In fact, Blackrock does not 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 crypto with a market cap of almost $50 billion.

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

We are aware of a recent story that suggested Gemini made a 100K BTC loan to large institutional counter-parties that reportedly resulted in a selloff in LUNA. Gemini made no such loan.

Hedge fund giant Citadel Securities similarly said that it had nothing to do with the collapse of the stablecoin UST. A representative of the firm told Bloomberg that the company “does not trade stablecoins, including UST.”

In March, Citadel Securities said that it plans to engage in making markets in cryptocurrencies over the coming months.

The collapse of LUNA has shaken the crypto market. At the time of writing, the price of the cryptocurrency has fallen to $0.035, down almost 100% over the past 24 hours. Meanwhile, UST dropped to a low of $0.30 on Wednesday but has since bounced back to the current price of $0.60.

Coinbase Banner  
Tags in this story
Bitcoin, Blackrock, BTC, citadel securities, Crypto, Cryptocurrency, Gemini, gemini crypto exchange, LUNA, Terra, TerraUSD, UST

Do you think Blackrock, Citadel Securities, and Gemini had a role in the collapse of terra? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Read disclaimer

Go to Source
Author: Kevin Helms

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.