Earlier today, Liquity Protocol ruffled some feathers after publishing an announcement stating that Circle, the issuer of the USDC stablecoin, had acquired the project. The post made on its official X account quickly caught the eye of many, triggering market action among traders who missed the April Fool's Day spirit of the post.
Liquity said that Circle had acquired the protocol, framing the announcement as a joke that would let Circle offer “a non-freezable stablecoin” and distribute yield under the Clarity Act. The post quickly triggered accusations of market manipulation after LQTY briefly rose about 5%. BREAKING: Circle has acquired Liquity.