GAM Investments this Friday (13) denied rumors that circulated on the internet that claimed that the Swiss asset manager would invest about US$ 3 billion to help the recovery of the Terra ecosystem, including the stablecoin LUNA and TrueUSD (UST), which have had an abrupt drop in their value in recent days.
A fake news report, published last Thursday (12), claimed the company was in talks with Terraform Labs to help with recovery attempts after Terra's algorithmic stablecoin UST lost its $1 peg, causing a cataclysmic crash. of the blockchain protocol that has become a darling of Decentralized Finance (DeFi).
According to information from Cointelegraph, the head of communications and investor relations at GAM Investments, Charles Naylor, confirmed that the aforementioned story was false, further stating that the quotes from GAM CEO Peter Sanderson were also untrue.
The LUNA/UST debacle has been the most talked about topic in the cryptocurrency space this week, due to the massive collapse of the Earth ecosystem reverberating through markets. UST-backed DeFi protocols saw losses of up to 80%, while UST-backed Bitcoin holdings were also forced into a sell-off that saw the BTC price drop to $24.000 before bouncing back.
Terra founder Do Kwon and his team even devised a recovery strategy for the LUNA ecosystem during the disaster, which involved burning an estimated $1,4 billion in UST while staking 240 million LUNA tokens in an effort to contain the devaluation of the US$ 1 peg.
However, one day after announcing the plan, the LUNA validators made the decision to place the network offline, due to the volatility of the LUNA/UST pair. Even cryptocurrency exchange Binance made the decision to suspend LUNA/BUSD and UST/BUSD on its trading platform following the outage of blockchain Earth.
