Swiss asset manager denies $3B LUNA/UST bailout talks

GAM Investments has retracted a fake news report that surfaced on Friday that claimed the Swiss asset manager would invest around $3 billion to help restore the Terra ecosystem, including Luna and the TerraUSD (UST) stablecoin.

The announcement on Thursday said the company was in talks with Terraform Labs to Assist in recovery attemptss The catastrophic collapse of the acclaimed blockchain protocol that has become a darling of the decentralized finance (DeFi) space comes after Terra’s algorithmic stablecoin UST lost its peg to the U.S. dollar.

Cointelegraph has confirmed to GAM Investments that the press release was fabricated and even included a false offer from GAM CEO Peter Sanderson. Charles Naylor, GAM’s head of communications and investor relations, flatly labelled the release fake news.

related: BREAKING: Binance suspends LUNA and UST trading due to Terra blockchain issue

this Ongoing LUNA/UST crash This week has been the focus of the cryptocurrency space, with the collapse of the Terra ecosystem reverberating in the market.DeFi protocols related to UST lose up to 80%while Bitcoin (bitcoin) UST-backed holdings were also forced to sell, causing BTC prices to rise As low as $24,000 before recovery.

Terra founder Do Kwon and his team released a proposed LUNA ecosystem restoration strategy mid-week, Involved in burning $1.4 billion UST Simultaneously stake 240 million LUNA tokens to prevent the devaluation of the dollar-pegged value.

A day later, the LUNA validator is done Decide to take the network offline Because the volatility of the LUNA/UST pair opens up the possibility for further governance attacks. Cryptocurrency exchange Binance has decided to suspend LUNA/BUSD and UST/BUSD on its spot trading platform following the Terra blockchain shutdown.