Swiss independent asset manager GAM Holding denied reports that it is in talks with Terraform Labs to provide financial assistance to support the algorithmic stablecoin UST.

“This story is not true and we have not issued a press release. GAM strictly controls their distribution. “We are investigating who the source of this statement is and how it was published.”

On May 12, a press release was issued on behalf of the holding regarding its intention to provide $2-3 billion to absorb the excess supply for the coin to be returned to the US dollar.

GAM has offices in 14 countries with 605 employees. Assets under management of the company amount to CHF 94.8 billion (~$103 billion).

On May 10, the UST price dropped below the $1 level. At the time of writing, the bids are close to $0.1. The rate of the LUNA cryptocurrency, which is used to maintain the stability of the UST through arbitrage, has dropped to $0.00001 (CoinGecko).

For the first time, the UST price briefly lost its peg to the dollar on May 8. After that, the Luna Foundation Guard organization allocated $1.5 billion to lend OTC traders to maintain the stability of the stablecoin.

At the time of the crash on May 11, Terraform Labs CEO Do Kwon presented a plan to restore the UST price. This did not prevent the stablecoin and LUNA from falling further. The next day, he announced possible additional measures to save the stablecoin.

Recall that on May 13, validators stopped the Terra blockchain for the second time in one day.