New York-based cryptocurrency custodian and exchange Gemini has refuted claims that it was involved in the massive sale of Terra’s native cryptocurrency, LUNA.
Gemini says he is not involved in LUNA’s price drop
Gemini via the official Twitter handle rejected There are early rumors that the company contributed to LUNA’s plunge in price after lending 100,000 bitcoins (worth $2.8 billion at the time of writing) to investment giants BlackRock and Citadel. A tweet from the cryptocurrency exchange said:
“We know of a recent story that Gemini sold LUNA by lending 100,000 BTC to a large institutional counterparty. Gemini did not make such a loan.”
Previous rumors suggest that BlackRock and Citadel have jointly borrowed 100,000 BTC from Gemini. Both companies exchanged 25,000 BTC for the algorithmic stablecoin UST, which lost peg, but later dumped both assets, which triggered a massive sale of LUNA and further broke the peg of $1 in UST.
BlackRock and Citadel also dismissed the rumors. Forbes report. A Citadel source said the company is not involved in stablecoin trading, including UST. BlackRock noted that, like Citadel, the company does not trade UST.
According to CoinGecko, LUNA is now down more than 99% and is priced at around $0.30. The UST stablecoin, which has not yet recovered dollar parity, is trading at $0.6.
Meanwhile, Kwon Do, the founder of Terraform Labs, recently proposed a plan to restore the UST peg. According to management, the way forward will be “absorb the stablecoin supply the UST wants to close before it starts the peg”.
Kwon also noted that Terra has approved community proposal 1164, which increases LUNA’s casting capacity from $293 million to $1.2 billion. The Terraform Lab chief added that the team will adjust the mechanism for collateralized stablecoins as UST rebuilds.
Korea’s major exchange puts LUNA on warning list
After LUNA’s price plunge, South Korean exchanges issued warnings about cryptocurrencies. Upbit designated Luna as a ‘caution’ and Bithumb designated an investment warning to protect investors.
The designation was issued due to the high price fluctuation of the token. Bithumb said that this warning does not mean that LUNA has been suspended, but that the exchange can decide whether to stop trading tokens after a specified warning period.
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