Investing.com – Following the (LUNA) and (UST) fiasco, Do Kwon and his organization said they would seek outside help. One of the first financial firms to offer help is Swiss asset manager GAM Holding AG (SIX:).
The firm is said to have entered into negotiations with Terraform Labs to “help support its Luna (UST) stablecoin”. GAM reportedly “plans” to invest between $2-3 billion to “absorb excess UST supply during its current selloff,” which should reinvigorate UST’s peg to the US dollar.
“Our interest in supporting UST reflects our interest in supporting a vibrant, innovative and resilient crypto market. We strongly believe in Terra’s ecosystem. Equally important, we believe in UST’s algorithmic approach to valuation When investors have the right incentives, they naturally trade in ways that maintain price stability.”
The pressures on UST and LUNA caused both coins to fall, reducing their value almost to zero and pushing the market further down. The fall also dented investor confidence in algorithmic stablecoins.
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