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.

This acquisition will enable Circle to offer its users a non-freezable stablecoin and directly distribute yield under the Clarity Act. pic.twitter.com/M6BHeYr3RK

— Liquity (@LiquityProtocol) April 1, 2026

The reaction centered on traders and crypto users who saw the fake acquisition headline as market-moving content from a token-linked project. Some users described it as an “April Fool’s pump and dump,” while the token’s price later reversed and fell about 6% from its April 1 peak.

What comes next is whether Liquity faces broader backlash over how projects use April Fools’ announcements when tokens are involved. For now, the protocol later clarified that the Circle acquisition claim was only a joke, while the episode reopened debate over where satire ends and market-sensitive messaging begins.

Source: Liquity on X.

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Filed under: News - @ April 1, 2026 4:32 pm