Swiss Asset Manager GAM may help Terra with $3B investment
GAM Holding AG is in talks with TerraForm Labs to help the recovery of its stable coin UST.
GAM Investments is an independent, pure-play asset management group. This Investment company is headquartered in Zurich. The Group provides a huge range of client segments for example institutions, wholesale intermediaries, financial advisers, and private investors.
On 12 May, GAM announced its plan to support Terraform Labs (Terra) financially. The company is currently in negotiations and there are chances of a $2billion to $3 billion contribution in Terra’ UST to absorb its stable coin.
Peter Sanderson, the GAM CEO, also shared his actual ideology to help Terra. The CEO said that they believe in the algorithm-based stable coin concept of Terra and also the company has an interest in this innovative crypto industry.
“Our interest in supporting UST reflects our interest in supporting a vibrant, innovative, and resilient crypto market. We firmly believe in Terra’s ecosystem. Just as importantly, we believe in UST’s algorithmic approach to valuation. When investors have proper incentives, they naturally trade in ways that maintain price stability.”
However, the Terra project team didn’t yet announce anything about it but a retweeted tweet by Terra’s UST Twitter account confirmed that the team is planning to remove Luna & UST coin from the algorithm-based concept and will provide UST trade independently under the full collateral value.
The community is deciding on a new @terra_money, between restoring a snapshot prior to attack, removing TFL, fully collateralizing UST and drafting & deliberating new mechanisms for $LUNA.
— will
We must salvage the remaining value in the ecosystem & community and rebuild the right way(@stablechen) May 13, 2022
Exchanges delisting Luna & UST
Many small exchanges either halted trading of UST & Luna or delisted.
In particular, the Binance exchange delisted Luna & UST fully from the platform and now users are allowed to withdraw their Terra network-based assets only from the Binance exchange.
Binance will suspend spot trading for the following trading pairs at 8:30am UTC, May 13 2022:
— Binance (@binance) May 13, 2022
LUNA/BUSD
These steps by such high-level crypto exchanges are enough to hurt the remaining value of the Terra Ecosystem. However such decisions are purely wrong for the project team of Terra but in reality, such decisions resulted in a better recovery for the crypto market.
Read also: Coinbase users facing some issues with their account
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