Gemini Denies Bitcoin Loan Rumors

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  • Gemini has denied rumors today that it has lent 100,000 BTC ($3 billion) to BlackRock and Citadel.
  • An unsourced rumor indicated that companies are abandoning their borrowed cryptocurrency, causing the price of TerraUSD to plummet.
  • Floor tanks are currently valued at $0.65, below the intended $1.00 peg but above the $0.32 mark touched earlier today.

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Gemini, a leading cryptocurrency exchange, has denied rumors that it made a large Bitcoin loan that contributed to the treasury stability crisis.

Gemini Denies Lending Rumors

Twins He denied rumors that he had issued a loan of 100,000 bitcoin – about $3 billion at current market rates – to BlackRock and Citadel.

A rumor spread this morning that Gemini has loaned 100,000 BTC to Blackrock and Citadel. These parties supposedly exchanged 25,000 BTC for TerraUSD (UST) – a stablecoin that has been rapidly declining in value since the weekend – and dumped both assets for profit. The supposed asset dumping was said to have caused a “great slippage and [triggered] A series of forced sale of both assets”, which caused a sell-off of the unstable crypto Terra LUNA.

Gemini confirmed in a tweet today that it “has not provided such a loan.”

The rumors reached a wide audience when Cardano CEO Charles Hoskinson shared them on Twitter with minimal comments. The tweet has since been deleted.

Although it is widely believed that the Anchor withdrawals caused the subsidence of the terrestrial reservoirs, there is no evidence that the aforementioned companies were involved in those events.

Tera keeps falling

Terra’s UST stablecoin has fallen rapidly in value since it broke off its $1 target this weekend. The asset is now valued at $0.65, well below $1 but above the $0.32 it touched earlier this morning. Another Terra token, LUNA, is down 95% this week.

It is reported that various recovery plans for TerraUSD are underway. Today, Terraform Labs CEO Do Kwon announced changes to the project’s economics, including a proposal that could increase LUNA’s minting capacity and modifications to collateral.

Reports on Wednesday also indicate that individuals from the project are seeking outside support from investors, although those efforts appear to have had little success.

Disclosure: At the time of writing, the author of this article owns BTC, ETH, and other cryptocurrencies.

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