The Terra UST crash is no longer news for people in space. However, the cause of the crash remains a matter of conjecture. The most popular of the speculation was the scandal accusations named after BlackRock, Citadel and cryptocurrency exchange Gemini.
Charles Hoskinson Twitter Post
In the heat of the cryptocurrency market crash, the UST problem was most prominent. This has caused people to find answers everywhere, and so many rumors are circulating. The most notable of these is a screenshot that Cardano founder Charles Hoskinson posted to his Twitter account.
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In the now deleted tweet, Hoskison posted a screenshot of what appeared to be a message from a person named Anna. This screenshot asserts that the UST opportunity is not a coincidence, but that major players in the investment field, such as the world’s largest asset manager BlackRock, investment firm Citadel, and cryptocurrency exchange Gemini, are organized and strategic accounts for cryptocurrencies.
Screenshot of the deleted Charles Hoskinson tweet | Source: Twitter
The screenshot accuses these three agencies of using both UST and BTC to coordinate their attacks on Terra, ultimately concluding that it was pure market manipulation.
In a genuine twitter way, community members quickly circulated these screenshots on the internet, which led to criticism of these organizations. This forced them to address these rumors.
LUNA trading at $0.29 | Source: LUNAUSD on TradingView.com
Responding to Gemini UST rumors
Crypto exchange Gemini, one of the suspects in this screenshot, came out to deny accusations of being involved in the UST crash. The exchange claims to have provided a 100,000 BTC loan to these institutions and subsequently ‘used’ them to differentiate the cryptocurrency, removing $25 billion from LUNA’s market cap.
In the post, Gemini denied any illegal activity and explicitly stated that he had not actually provided such a loan to any of the parties mentioned in the screenshot.
“We are aware of recent stories of Gemini offering a 100,000 BTC loan to a large institutional counterparty and reportedly selling $LUNA. Gemini “I didn’t make such a loan,” he said.
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But Gemini isn’t the only agency out there to uncover these rumors. BlackRock and Citadel both denied the charges. Citadel Securities has publicly stated that it was not involved in the crash as it does not even trade in stablecoins.
“The rumors that BlackRock played a role in the collapse of the UST are completely false. In fact, BlackRock does not trade UST.” said BlackRock spokesperson Logan Koffler.
As of this writing, LUNA has lost more than 90% of its value to trade at $0.08. The UST is fully pegged to the US Dollar and is currently trading at $0.7. Its current market cap is $245 million and $16.54 billion, respectively.
Featured image from Altcoin Buzz, chart from TradingView.com