Swiss asset manager GAM Holding said on Friday it is not in talks with Terra developer Terraform Labs over a possible bailout.
GAM, which is headquartered in Zurich, has over $95 billion assets under management. It is also publicly listed on the SIX Swiss Exchange.
The fake announcement came amid reports that Terra was courting private capital help for supporting the UST peg. The blockchain reportedly sought over $1.5 billion.
Terra network halted
Earlier today, Terra halted its blockchain to plug further losses in its main tokens. It was the network’s second such halt in the past 12 hours, with the chain yet to resume trading.
The move came as UST depegged to a new low of below $0.2. Terra has outlined several measures to support the token, including burning excess UST and minting more LUNA to support the peg.
Still, its measures have so far proven to be ineffective. This has also sparked growing criticism of the project and its founder, Kwon.
Mass withdrawals from the blockchain have rendered it almost completely devoid of capital, making any solitary attempt at recovery quite futile.
Terra founder Do Kwon recently said Terra was considering making UST a traditionally collateralized stablecoin– which requires far more capital.
UST, LUNA in trouble
As of press time, UST has now de-pegged to as low as $0.165- a far cry from its $1 peg. LUNA is also trading at half a cent, and appears to have crashed out of the top 200 cryptocurrencies by value.
Major exchanges Binance, OKX and Upbit have also delisted most trading pairs with UST and LUNA. With the blockchain now suspended, holders have few avenues to trade the tokens.
- Breaking: Binance Suspends LUNA and UST “Spot” Trading Till Further Notice
- Is A Bitcoin Winter Here? Next BTC ATH Could Only Come By 2024
- Swiss Asset Manager GAM Denies Talks With Terra Over Possible Bailout
- Bitcoin (BTC) Recovers Past $30K, But Don’t Celebrate Yet
- Gaming Cryptos Recover The Most After Latest Crash, Here’s Why
- As Terra Collapses, This Proposal Attempts To Save Developers And Users
- Terra Network Halted For The Second Time In 12 Hours, What’s Next?
- Japanese Brokerage Giant Nomura Starts Offering Bitcoin (BTC) Derivatives in Asia
- Crypto Exchange Binance Decides to Delist Terra LUNA and UST Stablecoin
- Former Meta Executive Latest To Join Crypto Bandwagon
- Bitcoin Price Analysis: BTC Price Reclaims $30K Amid Extreme Oversold Market Conditions; Time To Buy?
- BNB Price Analysis: BNB Rebounds From $263 Eyes Next Target of $335
- APE Price Analysis: Can Renewed Bullish Rally Surpass $10 Mark?
- Solana Price Prediction: SOL Price Struggles Below $50.0; Is August Low On Horizon?
- AXS Price Analysis: Descending Trendline May Carry AXS to $14 Mark
- Ethereum Price Analysis: ETH Price Extends Losses Below $2,000; What holds Next?
- TRX Price Analysis: Concentrated EMAs Assist Buyers To Defense $0.072
- Bitcoin Price Analysis: BTC Price Breaks Toward December 2020 Lows; Is $17,000 Next?
- GALA Price Analysis: $0.07 Support Breakdown Tease 30% Fall in GALA
- Cardano Price Prediction: ADA Sets Fresh Lows Near $0.50; Is Bad Not Over?