The involvement of the Jane Street trading firm in the collapse of Terraform Labs is the talk of the town. According to Santiment, the community is heavily involved in discussing matters about this over Telegram, Reddit, and X.
Jane Street accelerated Terraforms’ crash
Trading giant Jane Street’s involvement, which accelerated the demise of Terraform Labs, is the top-rated story, according to Santiment, a social metrics analytical tool. Terraform Labs’ court-appointed administrator, Todd Snyder, stated that Jane Street “abused market relationships.”
The firm gained access to data that was not available to the public. In Wall Street Journal, Snyder stated, “Jane Street abused market relationships to rig the market in its favor during one of the most consequential events in crypto history.”
Just as Terraform’s stablecoin, USTC, started to lose its peg to the dollar, a wallet linked to Jane Street pulled out $85 million from the Curve liquidity pool. The trading firm made this move just 10 minutes after Terraform Labs withdrew $150 million to adjust and realign the liquidity.
The timing of Jane Street’s withdrawal, just a few minutes after Terraform Labs’ pullout, shows that it was more than just a shrewd move, and it pointed to the fact that they had access to non-public information about Terraform’s internal liquidity management.
ZachXBT’s ‘one of crypto’s most profitable firms’ hint blows up
Meanwhile, another insider trading activity story rated the second best as on-chain sleuth ZachXBT dropped hints about the firm alleged of insider trading.
In the X post, ZachXBT revealed the insider as “one of crypto’s most profitable firms.” Social media chatter blew up with excitement in an attempt to find out who this most profitable firm is.
The next best story was about the market, the beginning of the next multi-year bull run, liquidations, and so on. And the final chatter was about Vitalik Buterin selling ~3,788 ETH (~$7.3M) over three days.
Some social media community members link the sale to market weakness and question founder confidence, while others suggest sales fund other projects or treasury needs; still others read it as bearish signaling. However, the motive is still unclear.
