Gemini, BlackRock, And Citadel Are All Caught Up In LUNA Rumors.

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Gemini loaned Blackrock and Citadel 100k BTC (it appears in their loan book). They converted 25K of the BTC into UST quietly in preparation for the strike. 

​They phoned Do Kwan at Terra Foundation when the moment was ripe and said they wanted to sell a lot of Bitcoin for UST. They informed him they didn't want to move the market because it was a significant deal and offered if he wanted to buy their massive block of BTC at a discount to the UST. He gave them a large chunk of US, significantly reducing UST liquidity. Blackrock/Citadel liquidated all of the BTC and UST at that point, causing huge slippage.

Triggering a chain reaction of forced sales in both assets The underlying issue was that Blackrock/Citadel understood Anchor, which held a lot of LUNA, was a Ponzi scheme (they offer 20%, Staking APY) and that the crash would drive additional withdrawals from Anchor that could be repaid.

These forced withdrawals and selling would cause a large selloff in Luna, breaching the $1 peg and further destabilizing the market. To satisfy their obligations, Blackrock and Citadel may now acquire bitcoin for a low price.

the loan and keeping the difference Meanwhile, billions of longs and Bitcoin VaR were wiped out, according to the statement.


Kwon also shared his thoughts on the most likely explanation for this idea's de-pegging. According to him, the stablecoin's the price stability mechanism is absorbing 10% of total UST production, while the expense of absorbing huge amounts of stablecoins at the same time has "stretched out the on-chain swap spread to 40%."

​Blackrock is quite literally inside the White House.
The attacks on crypto are real.