According to Forbes’ news, the world’s largest asset manager BlackRock denied allegations that Terra (LUNA) was instrumental in its collapse.
Rumors were swirling on Twitter Wednesday that asset manager BlackRock, trading firm Citadel, and cryptocurrency exchange Gemini have joined forces to destroy Terra.
BlackRock, Citadel and Gemini Deny Allegations
Winklevoss-led exchange lends these companies 100,000 Bitcoins to purchase UST from Terraform founder Do Kwon allegedly given.
Subsequently, BlackRock and Citadel withdrew their Bitcoin and UST holdings, resulting in a series of forced sales.
Removing the peg of the UST lowered the price of the LUNA, which led to an overall decline in the market. The two firms were allegedly able to cheaply buy back Bitcoin to repay the huge loan.
This conspiracy theory was even shared in a tweet by Cardano founder Charles Hoskinson. But Hoskinson soon deleted the tweet.
However, Gemini was the first company to deny this fact. Afterwards, Citadel stated that it had nothing to do with the collapse of LUNA, as UST does not trade stablecoins.
LUNA’s price fell 96.43% in one day to as low as $0.31. It fell 99.75% from its record high of $119.18 recorded on April 5.
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