Swiss asset manager GAM Holding AG has announced that it is planning to invest between $2 billion and $3 billion to help restore the TerraUSD dollar peg.
The firm says that it has started to engage Terraform Labs, which had announced that it was seeking external assistance after UST and LUNA crashed.
GAM CEO Peter Sanderson says that the interest in supporting UST stablecoin shows its commitment back to the growing cryptocurrency space. The executive adds that the firm has confidence in UST’s algorithmic model.
LUNA tokens tanked to zero when the UST depeg caused the investors to take advantage of the situation to arbitrage it with LUNA tokens.
The arbitrageurs caused a huge price slump in LUNA tokens. The token traded at around $80 in the past week but has since sunk to $0.000055. Terra has halted its blockchain as major exchanges, including Binance, move to delist most of its pairs.