Gemini: Terra Conspiracy Peddled by Hoskinson Untrue

Gemini dispelled rumors that it has loaned 100,000 bitcoins to Blackrock and Citadel.
Charles Hoskinson deleted his tweet that made hair-raising allegations against Terra Labs.
Terra (LUNA) price has crashed by 94.4% in the last 24 hours.

Cryptocurrency exchange Gemini made its position clear amid allegations circulating that it was part of a scheme made by high-profile investment companies to exploit Terra (LUNA) and TerraUSD (UST).

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Gemini’s statement came after wild conspiracies floated across the crypto space. In fact, Cardano godfather Charles Hoskinson shared the allegations on his Twitter account. However, after Gemini made the above statement, Hoskinson has since deleted his tweet. Instead, he said “Well sh*t, back to the drawing board then. Anyone else got anything?”

As per the story, crypto investment management firms Blackrock and Citadel borrowed up to 100,000 bitcoins from the said exchange. After receiving the amount, these two firms contacted Terra Co-Founder Do Kwon, attempting to sell him up to 25,000 BTC at a discount. The condition was simple: Do Kwon needed to use UST to buy the said amount.

However, as per the conspiracy theory, this scheme caused UST to lose a huge amount of liquidity. Soon, the two crypto portfolio managers dumped BTC and UST, causing a lot of panic-selling, leading to the liquidation of most positions in just over a day.

As grand as it sounds, Hoskinson retracted the tweet, which proves that he does not believe in it anymore. To be fair, Hoskinson has been in a word war with Do Kwon, which might have led to his becoming a victim of fake news.

At the time of writing, ADA price is trading at $0.557, according to CoinGecko. Meanwhile, UST price is at $0.68, while LUNA price is at $1.65 — a shattering -94.4% movement in the last 24 hours.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.