Cryptocurrency News, Terra (LUNA)

Swiss Asset Manager Denies News of $3M Investment to Help LUNA/UST Recovery

GAM Investments has slammed a bogus release saying that it will spend $3B to aid LUNA/UST recovery attempts as fake media.

GAM Investments Squashed Fake News

GAM Investments debunked bogus news headlines on 13th May, claiming that the Swiss asset manager will contribute $3B to help the Terra community revive, like UST and LUNA. UST ended up losing its $1 peg, creating a catastrophic meltdown of the lauded blockchain technology that had become a favorite of the DeFi industry, according to a statement made on 12th May.

With the help of Charles Naylor, Cointelegraph was able to corroborate that the news report was created and even featured false comments from Peter Sanderson. There has been a lot of attention paid to the ongoing disaster between LUNA/UST and the breakdown of the Terra environment this week. DeFi protocols linked to UST suffered losses of about 80%, and UST-backed BTC holdings were also compelled to sell off, with the Bitcoin price falling below $24K before it recovered.

At the end of the week, Do Kwon and his crew offered an alternative recovery approach for the LUNA community, which would see $1.4B of the tokens burned and another 240M staked to stabilize the UST $1 peg.

After a day, LUNA validators decided to shut down the network because the UST/LUNA pair’s instability posed a risk of more governance attacks. After the shut down of the Terra network, UST/BUSD and LUNA/BUSD were removed from Binance’s spot trading system.

Binance Suspended LUNA and UST Trading

After the Terra blockchain’s shutdown, Binance halted UST/BUSD and LUNA/BUSD on its spot trading system. After the algorithmic stablecoin dropped significantly, Binance stopped trading pairings with UST and LUNA on its platform.

Binance announced the action on 13th May, suspending spot trading for the UST/BUSD and LUNA/BUSD trading pairs. It’s unclear when LUNA and UST withdrawals will resume, as the cryptocurrency exchange just indicated that it’d wait for the Terra network problems to be resolved before proceeding. An important black swan incident that shook the Bitcoin market in 2009 has prompted this newest step by the leading cryptocurrency exchange in the world. 

According to an announcement on 12th May, Binance Futures had removed COIN-M LUNA perpetual futures from its trading platform. 12th May saw the Terra network go offline as a precautionary measure shortly after the death of the network’s LUNA currency, which users use to fund the network.

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