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Citadel Securities and BlackRock Deny Rumors of Involvement in Terra (LUNA) Collapse: Report

Prominent blue-chip institutions are debunking rumors circulating on social media that they were involved in the recent collapse Ethereum Challenger Terra (LUNA) after being algorithmic stablecoin was decoupled from the dollar.
According to a new report from Bloomberg, massive institutional investors like BlackRock and Citadel Securities are fighting back the notion that they were involved in the dissolution of LUNA and its stablecoin TerraUSD (UST).

A Citadel representative told Bloomberg that the company “does not trade in stablecoins, including UST.” Similarly, BlackRock spokesman Logan Koffler told Bloomberg that “rumors that BlackRock played a role in the collapse of UST are categorically false. In fact, BlackRock does not trade UST.”

The price of Terra recently experienced a massive 99% hyperinflationary decline that took it from around $1.00 to $0.0083, causing the Blockchain ceased operations.

Just forty days ago, Terra changed hands for over $119. LUNA has dropped even further and is trading for $0.00015 at the time of writing.

our recommendation Citadel Securities and BlackRock Deny Rumors of Involvement in Terra (LUNA) Collapse: Report, Crypto Trading News

TerraUSD also experienced a huge price drop as it broke away from the dollar and fell as low as $0.08 before falling back to $0.154 at the time of writing.

However, Terra founder and CEO Do Kwon says he has a plan to preserve the embattled crypto asset by restoring the chain and returning the network’s ownership to 1 billion tokens.

According to Do Kwon, 40% of the remaining tokens should be dedicated to LUNA holders before the depegging event, another 40% should go pro rata to UST holders at the time of network upgrade, 10% to LUNA buyers at the moment before blockchain went under and 10% into the community pool for future projects.

“Why does this redistribution make sense? UST holders must own a large share of the network. As debt holders of the network, they deserve compensation for the tokens they held to the end.

Terra needs a community to continue to grow and make its blockspace valuable again – the only way to do that is to ensure that before the attack begins, token holders, the most loyal community members and builders, stay around continue to create value.

It’s a tough balance — and no easy answers in redistributing value across the network. But value must be distributed for the ecosystem to survive, and in its current state it won’t.”
Check the price action

Source: Crypto News Deutsch

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