GAM Investments has quashed fake news reports that surfaced on Friday that claimed the Swiss asset manager would invest some $3 billion to assist in the recovery from the Terra ecosystem, including LUNA and TrueUSD (UST) stablecoin.
A comment printed on May 12 claimed the firm was participating in talks with Terraform Labs to assistance with recovery attempts after Terra’s algorithmic stablecoin UST lost its $1 peg — creating a cataclysmic crash from the acclaimed blockchain protocol which in fact had be a darling from the Decentralized Finance space.
Cointelegraph has confirmed with GAM Investments the pr release was fabricated — with mind of communications and investor relations Charles Naylor categorically labeling the discharge as fake news – which even incorporated fake quotes from GAM Chief executive officer Peter Sanderson.
The ongoing LUNA/UST debacle continues to be the focus from the cryptocurrency space now – using the collapse from the Terra ecosystem reverberating with the markets. DeFi protocols which were associated with UST saw losses of as much as 80%, while Bitcoin holdings supported by UST were also forced right into a sell-off which saw the cost of BTC go as little as $24,000 before recovering.
Terra’s founder Do Kwon and the team released a suggested recovery technique for the LUNA ecosystem midweek which involved burning $1.4 billion UST while staking 240 million LUNA tokens in order to stem the devaluation from the UST $1 peg.
Each day later, LUNA validators required a choice to accept network offline because the volatility from the LUNA/UST pair provided the opportunity of further governance attacks. Cryptocurrency exchange Binance required the choice to suspend LUNA/BUSD and UST/BUSD on its place buying and selling platform following a halting from the Terra blockchain.