Cryptocurrency giants Gemini, BlackRock and Citadel have denied rumors of being involved in trading operations that provoked the weakening of the UST stablecoin’s peg to the US dollar.
Cryptocurrency exchange Gemini, led by the Winklevoss twins, on their official Twitter account announcedwhich did not contribute to the fall in the price of LUNA stablecoin:
“We are aware of a recent story that suggested that Gemini provided a 100,000 BTC loan to large institutional counterparties, which reportedly led to the LUNA sell-off. The twins did not give such a loan.”
Earlier, unverified information appeared, according to which BlackRock and Citadel took a loan from the Gemini crypto exchange for 100,000 bitcoins, and then converted 25,000 BTC into the algorithmic stablecoin UST. After UST lost its peg to the US dollar, companies sold the stablecoin, which led to a sell-off in LUNA and further weakened UST’s peg to the dollar.
Following the Gemini denial, BlackRock and Citadel also refuted rumors of involvement in the fall of LUNA. Citadel said that the company does not trade stablecoins, including UST. BlackRock, like Citadel, assured that it did not trade UST.
BlackRock Vice President Logan Koffler denied the company’s involvement in the downfall of LUNA in full:
“The rumors that BlackRock was involved in the collapse of the UST are categorically false. In fact, BlackRock does not trade UST.”
Recall that the Terra project is still under threat – the UST stablecoin rate failed to return to $1 and fell to $0.34 on May 11, while the rate of the LUNA coin, which acts as UST collateral, collapsed to $5.
Source: Bits
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