No, Citadel, BlackRock and Gemini did not act in concert to take down UST. The companies denied rumors of an alleged loan.
The asset management giant, BlackRock , y Citadel Securities the renowned market an area or arena, online or offline, in which commercial dealings are conducted. maker, have dismissed recent conspiracy theories claiming that the collapse of the stablecoin USD Land (UST) this week was the product of a coordinated attack between the two companies.
Representatives from both companies addressed the rumors on Wednesday, amid controversy over the drop in UST, which is expected to maintain a stable value equal to $1. In an interview for Bloomberg a representative of Citadel assured that the firm was not involved, and repudiated the assertions. “ [Citadel] does not trade with stablecoins, including UST “, they say.
BlackRock , por su parte, que es considerada la mayor gestora de activos del mundo, también habló con el medio de noticias. Si bien la compañía ha respaldado a Circle which operates another stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. call USD Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. (USDC), said that does not negotiate or have any relationship with the UST. . In an e-mailed statement, firm spokesman Logan Koffler said:
Rumors that BlackRock played a role in the collapse of UST are categorically false. In fact, BlackRock does not trade UST.
Gemini denied alleged Bitcoin loan
The disengagement of UST and the general collapse of the Earth apparently sparked a lot of rumors among members of the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. community around the world. One of the conspiracy theories that was most widely circulated among the circles was apparently involving BlackRock , Citadel and cryptocurrency exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Gemini .
As reported by CoinDesk those rumores ensured that the asset manager and Citadel had taken out a loan in the amount of 100,000 bitcoins de Gemini and then they had exchanged 25% of that money for UST. Then, the two companies had gotten rid of the entire UST and the Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. collapsing UST’s sister token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. LUNA along with the rest of the market.
Gemini also refuted the allegations in a tweet Wednesday night.
We are aware of a recent story that suggested Gemini made a 100K loan in BTC to large institutional counterparties that reportedly resulted in a massive sell-off of LUNA. Gemini made no such loan.
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.
– Gemini (@Gemini) May 11, 2022
The stable currency currency is a medium of exchange that defines value. of Earth lost its parity with the dollar this week, sinking to a low of 33 cents on Wednesday. UST’s fall was followed by an even bigger collapse for LUNA, the other cryptocurrency native to the US dollar. Earth which is linked to the stablecoin . LUNA has now plummeted over 98%, in a move that saw it go from USD $80 to USD $0.01 in a span of 7 days.
But in the midst of that incident, and possibly as a result of these moves, the cryptocurrency market also recorded a massive price collapse . Bitcoin lost more than 10% of its value, dropping below USD $29,000 on Thursday; and even the main stablecoin ,Tether (USDT) momentarily lost its 1:1 peg a “peg” is a specified price for the rate of exchange between two assets. to the dollar.
Rumors of an orchestrated attack
Although the companies have dispelled the rumors, the most recent loss seen across the entire cryptocurrency market, and the loss of USDT parity, has continued to prompt speculation that this is a larger coordinated attack on stable coins and the rest of the market.
In fact, the theory involving BlackRock , Citadel y Gemini is not alone in trying to make sense of recent events. As reported byCryptoNewsBut for several days now, other rumors have been circulating in the crypto space. Among them, one that claims that Fir Tree Capital capital is most commonly defined as the large sum of money you would use to invest. Management , a USD $4 billion hedge fund, wanted sell short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. USDT earlier this year.
On the other hand, Larry Cermak, director of research and analysis at The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. The idea was that Jump Capital , Alameda Ventures and other venture capital firms could provide $2 billion to help rescue UST. “ Whether this rumor is true or not, it makes a lot of sense that they would spread a price difference between asking and selling prices of the asset. “he commented on the matter, as quoted in the report.
Whether the collapse of UST was the result of an orchestrated attack or a failure in its mechanism remains unanswered. What is certain is that, for the moment, the team of Earth has not given up on the stablecoin. Its founder, Do Kwon, has announced a plan, and they’ve beendesplegado varias medidas para re-vincular el activoas well as to save the rest of the ecosystem.
- Terra founder Do Kwon announces plan to save UST as LUNA slips 90%.
- Charles Hoskinson joked about what happened with Terra and reiterates the decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. nature of Cardano’s treasury
- Binance briefly suspended Terra token withdrawals amid UST collapse
Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva