A conspiracy theory that began on 4chan and was amplified by Cardano founder Charles Hoskinson has been met with swift denials by all parties.
Did UST collapse because of a shadowy conspiracy involving the same cast of characters from the GameStop short squeeze? Or was it because of a structural problem with the nature of stablecoins?
Bad news for those who believe the former: Everyone named in this conspiracy theory has come out with swift denials.
- While BlackRock manages cash reserves for USDC, it said in a public statement it doesn’t trade UST.
- Likewise, Citadel Securities has publicly stated that it does not trade in stablecoins.
- Gemini said in a tweet that it has made no such loan as claimed in the conspiracy theory.
- The conspiracy theory alleges that BlackRock and Citadel borrowed 100,000 bitcoin from Gemini and swapped 25% for UST. Then the two companies dumped the UST and BTC crashing Luna and the price of bitcoin.
- Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, amplified this evidence-free narrative on Twitter before deleting the tweet.
- Meanwhile, crypto hedge fund Arca has told its partners that it is doubling down on UST as it believes the algorithmic stablecoin will ultimately recover and maintain its peg.
- Luna is currently trading at 0.41 cents while UST is at 0.68 cents.