Gemini, a major cryptocurrency exchange, has rejected claims that it provided a huge Bitcoin loan that exacerbated UST’s stability issues.
Gemini has denied the allegations that it gave BlackRock and Citadel a 100,000 Bitcoin loan worth $3 billion at current market values.
According to a widely circulating report this morning, Gemini lent Blackrock and Citadel 100,000 BTC. Those parties allegedly exchanged 25,000 BTC for TerraUSD (UST), a stablecoin whose value has been drastically declining since the weekend, and then sold both assets for profit. The alleged asset dump allegedly resulted in “huge slippage and [started] a cascade of forced selling of both assets,” resulting in selloffs of Terra’s non-stablecoin cryptocurrency LUNA.
In a tweet today, Gemini stated that it “made no such loan.”In a tweet today, Gemini stated that it “made no such loan.”
When Cardano CEO Charles Hoskinson tweeted the rumor on Twitter with little commentary, it spread quickly. The tweet was later taken down.
Though it is widely assumed that Anchor withdrawals contributed to UST’s downfall, there is no evidence that the above corporations were engaged.