“They killed LUNA.” Celsius CEO called the new victim of the “Sharks of Wall Street”

Alex Mashinsky believes that short traders are responsible for the collapse of UST and USDT, as well as the CEL token

20.05.2022 - 09:30

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2 min

What’s new? The CEO of Celsius (CEL), a DeFi platform, Alex Mashinsky said during a speech on Twitter Spaces that the “Sharks of Wall Street” are responsible for the collapse of the TerraUSD (UST) rate and the short-term loss of the Tether (USDT) peg to the US dollar. In his view, short traders are also responsible for the recent fall in the CEL rate, Cointelegraph reports. According to CoinGecko, the price of the Celsius native token has fallen 89% from its all-time high of $8,05, as of May 20, it is trading at $0,82.

Cointelegraph’s material

What else did Mashinsky say? The head of Celsius explained that the Wall Street traders deliberately seek to profit from the collapse of the cryptocurrency market.

“They killed LUNA. They tried Tether, Maker, and many other companies. It’s not just us. […] The point is that the Sharks of Wall Street are now swimming in crypto waters.,” Mashinsky added.

What is Celsius? It is a DeFi banking platform for lending and staking cryptocurrencies. The project was founded in 2017 by Alex Mashinsky and Daniel Leon.

What happened before? Galaxy Digital CEO Mike Novogratz believes that the global macroeconomic situation was the cause of the rate collapse of the UST stablecoin and its backing token LUNA. He added that the collapse of Terra “dented confidence in crypto and DeFi.”

Billionaire Bill Ackman compared Terra’s collapse to the collapse of a financial pyramid. According to him, the price of the native token LUNA was only supported by demand from new investors and the limited supply of available coins.

The founder of the TRON blockchain ecosystem Justin Sun expressed concern about the future fate of his platform’s native token as early as May 11. He believes that TRX could repeat the UST scenario because of a 100% funding of short positions on the Binance exchange.

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