Prominent blue-chip institutions are debunking rumors circulating on social media that they had a hand in the recent collapse of Ethereum challenger Terra (LUNA) after its algorithmic stablecoin depegged from the dollar.
According to a new report by Bloomberg, massive institutional investors such as BlackRock and Citadel Securities are pushing back against the notion that they were involved in the disintegration of LUNA and its stablecoin TerraUSD (UST).
A representative of Citadel told Bloomberg that the company “does not trade in stablecoins, including UST.” Similarly, BlackRock spokesperson Logan Koffler told Bloomberg that “rumors that BlackRock had a role in the collapse of UST are categorically false. In fact, BlackRock does not trade UST.”
Terra’s price recently witnessed a massive 99% hyperinflationary downswing that saw it