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GAM Investments has called fake news on a fabricated announcement claiming it would invest $3 billion to help Luna/UST recovery efforts.

GAM Investments has quashed fake news reports that surfaced on Friday that claimed the Swiss asset manager would invest some $3 billion to aid in the recovery of the Terra ecosystem, including LUNA and TrueUSD (UST) stablecoin. 

An announcement published on Thursday claimed that the firm was engaging in talks with Terraform Labs to assist in recovery attempts after Terra’s algorithmic stablecoin UST lost its $1 peg — causing a cataclysmic crash of the acclaimed blockchain protocol, which had become a darling of the decentralized finance (DeFi) space.

Cointelegraph has confirmed with GAM Investments that the press release was fabricated — with head of communications and investor relations Charles Naylor categorically labeling the release as fake news — which even included fake quotes from GAM CEO Peter Sanderson.

Related: Breaking: Binance suspends LUNA and UST trading amid issues on Terra blockchain

The ongoing LUNA/UST debacle has been the focal point of the cryptocurrency space this week — with the collapse of the Terra ecosystem reverberating through the markets. DeFi protocols that were tied to UST saw losses of up to 80%, while Bitcoin (BTC) holdings backed by UST were also forced into a sell-off which saw the price of BTC go as low as $24,000 before recovering.

Terra’s founder Do Kwon and his team released a proposed recovery strategy for the LUNA ecosystem midweek which involved burning $1.4 billion UST while staking 240 million LUNA tokens in an effort to stem the devaluation of the UST $1 peg.

A day later, LUNA validators took a decision to take the network offline as the volatility of the LUNA/UST pair provided the potential for further governance attacks. Cryptocurrency exchange Binance took the decision to suspend LUNA/BUSD and UST/BUSD on its spot trading platform following the halting of the Terra blockchain.

One thought on “No rescue for Terra: Swiss asset manager denies $3B LUNA/UST bail-out talks

  1. Few hours ago there was a post talking about potential 10$ price for Moons. A comment, defending the OP, suggested that there is no need for a use case, all it needs is hype.

    Yeah, I agree, once in a while you will get great returns by gambling on a meme coin. However, getting rich by luring future investors in, while lacking an actual product is the definition of a Ponzi scheme.

    If you are knowingly betting your fiat in a coin with no utility, you're not a crypto enthusiast, you're a gambler, you're one of the reasons this community gets a bad reputation.

    If you cannot offer a few actual use cases of distributed ledger technology, you're not woke, you're part of the problem.

    If you do not constantly try to educate yourself and you focus solely on “how to get rich”, you're better off in a casino.

    It's totally understandable that the demographic in 2022 is totally different than in 2016. But, for the love of god, every once in a while, remind yourself of the fundamentals, the value drivers, the actual use cases and the drawbacks of DLT.

    Rant over. Bring me the downvotes.

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