Synthetic reverse FUD | Financial Times

It appears somebody isn’t coping effectively with the entire Terra/Luna omnishambles. At all. Look at what landed in our inbox this morning.

13 May 2022

GAM Holding AG isn’t in negotiations with Terraform Labs to help
the Luna stablecoin

A press launch purporting to return from GAM Holding was issued at
23.00 UK time on 12 May. There is not any fact within the story and GAM did
not concern a press launch. GAM has strict controls on the
dissemination of press releases, and we’re investigating the supply
of this story and the way it got here to be printed.

The bogus “press release” went out on the pay-per-post AccessWire service yesterday night with GAM’s emblem, a quote from its chief govt Peter Sanderson and even a telephone quantity to contact the agency’s flack. (FTAV tried calling it a number of instances but it surely didn’t work, sadly.) At pixel time it’s nonetheless on the AccessWire web site however simply in case that modifications, we duplicate the textual content under:

GAM Holding Could be Terra’s White Knight

Leading Asset Manager Could Bail Out UST in Deal Worth Billions

ZURICH, SWITZERLAND / ACCESSWIRE / May 12, 2022 / Leading asset supervisor GAM Holding AG is happy to announce that it’s negotiating with Terraform Labs (Terra) to assist help its Luna stablecoin (UST). GAM is predicted to speculate between $2 billion and $3 billion to soak up extra provide of UST throughout its present sell-off. The transfer seeks to re-establish UST’s peg to the US greenback.

“Our interest in supporting UST reflects our interest in supporting a vibrant, innovative, and resilient crypto market,” notes GAM CEO Peter Sanderson. “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. When black swan events impact markets, opportunities blossom. We see opportunity in UST’s recent activity, and continue to see promise in Terra’s broader strategy.”

Predictably, the pretend launch was instantly picked up by distribution silos plus a medley of famously scrupulous crypto retailers and social media accounts. Desperation springs everlasting, particularly on this planet of digital property.

To the credit score of the crypto bros behind the discharge there’s an admirable lack of typos. The pretend Sanderson quote has the precise proper tenor of waffle. Being connoisseurs of the pretend press launch we can’t assist however admire one that may be a tad neater than most. And GAM has some historical past in the case of dodgy investments, so perhaps it appeared like a believable candidate right here.

But the concept a struggling midsized Swiss asset supervisor would pump $3bn into an already imploded algorithmic stablecoin highlights simply how tragicomically silly the entire saga has develop into.

As tragic because the collapse has undoubtedly been for lots of people who sank their life financial savings into magic web cash, they only want to grasp that Terra/Luna is NGMI.

Further studying:
Earth to Bloomberg – FTAV
Earth to buyers – FTAV
Sticky Fingerprints – FTAV

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