A scandal around the Terra ecosystem flares up on the network. Large investment companies BlackRock and Citadel were suspected of the collapse of Terra and TerraUSD. Against the backdrop of market turbulence, the price of the USDT stablecoin has lost parity against the dollar. Bitcoin on Thursday updated the lows of the end of December 2020, but then rebounded. Bitcoin added 0.6% on Thursday, ending the day around $28,600. Ethereum lost 5.4%, other leading altcoins from the top ten showed mixed dynamics: from a decline of 6% (Cardano) to a rise of 3.4% (XRP) . Cryptocurrency index of fear and greed by Friday fell by 2 points to 10 and remains in a state of “extreme fear”. Bitcoin on Thursday updated the lows of the end of December 2020 near $25,400, losing more than 10% at the moment due to the panic around stablecoins. However, then BTC began to correct upwards against the backdrop of a rebound in stock indices, trying to return to the round level of $30,000. The high-tech Nasdaq was also able to show symbolic growth (0.06%) by the end of the day. The collapse of Terra and UST hit the crypto market hard. According to CoinGecko, most of the algorithmic stablecoins have lost their peg to the dollar. The head of Terraform Labs, Do Kwon, presented a plan to restore the price of the UST stablecoin. Against this background, the LUNA cryptocurrency broke down the $1 mark. According to media reports, Do Kwon has previously been behind the failed Basis Cash stablecoin project that collapsed. Against the backdrop of market turbulence, the USDT stablecoin price tested the $0.94 level. Paolo Ardoino, CTO of the issuer of Tether, said that the company’s reserves are enough to buy back all assets at a 1:1 ratio to the US dollar. Tron founder Justin Sun saw signs of an impending attack on the algorithmic stablecoin USDD launched on the Tron network in May. To prevent such a scenario, Sun announced the allocation of 2 billion from the TRON DAP Reserve organization. Rumors spread online about the involvement of the BlackRock investment company and the Citadel hedge fund in the collapse of the UST. They were distributed, among other things, by the head of the IOHK, Charles Hoskinson. BlackRock called the rumors about its involvement in the collapse of UST “categorically wrong” and noted that the company does not trade the asset. Citadel also stated that the company does not trade stablecoins, including UST. Well-known crypto twitter analyst CryptoWhale believes that the market is in the early stages of a bearish cycle. According to him, Bitcoin, Ethereum and all the other countless coins will soon follow LUNA, which lost 98% of its value in 6 days. “Run before it’s too late,” he added. Source: FXPro

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