Nox Bitcoin will refund UST to $1 to its customers

Nox Bitcoin, a cryptocurrency exchange in Brazil, has taken the unprecedented step of using its own funds to reimburse customers for their TerraUSD coins at the full rate.

Following the local media report on May 20, the Nox Bitcoin exchange has refunded all UST holders at a rate of $1 with Tether USDT.

The report stated that the cryptocurrency brokerage firm paid 620,000 reais ($127,000). The exchange paid the amount to compensate all of its clients who lost money due to the collapse of the Terra ecosystem.

Related Reading | Ripple Price Drops Below $0.43 as Bears Take Control of Market

“FatMan” from the research forum Terra commented in a tweet on May 20 that the decision could set a global precedent for other crypto exchanges.

The tweet said;

This is quite significant. A Brazilian cryptocurrency exchange has refunded all UST holders at a rate of 1:1 with USDT. Likewise, this case can be used as a key precedent to argue that exchanges are responsible for UST’s losses. If malicious misrepresentations were made.

UST Back to $1 for those lucky ones

The exchange stated that it would refund customers the amount of the difference between the current rate for UST and the dollar parity from which it collapsed. This implies that a holder of 100 UST at $0.06 will receive a refund of 94 USDT.

US$ price chart
UST is currently trading at $0.066 with a green line | Source: UST/USD price chart

According to the CEO of Nox Bitcoin, Joo Paulo Oliveira, the company is not responsible for bearing the losses of clients for investing in certain coins on its platform. However, they decided to intervene to ensure the trust of their customers.

He continued;

Clients have trusted us to bet and we understand that their trust is much more valuable than anything else. As a result, we will reimburse these users less expenses that we would incur elsewhere, such as marketing.

The news was a relief and brought positivity to the cryptocurrency space. However the The decision of the Nox Bitcoin exchange reflects Brazilian customer protection regulations.

The exchange also offers staking services, such as Anchor Protocol, which is heavily used by UST. The DeFi protocol offered up to 20% APY on the UST holding and was seen primarily as instrumental in its collapse due to these unsustainable returns.

People are now waiting to see what happens next regarding the inclusion of UST and LUNA. “This may no longer exist in the near future,” Oliveira stated before adding, “but you never know what can happen in an unpredictable crypto market.”

Related Reading | Cosmos (ATOM) soars 12% after the recovery of Bitcoin and Ethereum

According business viewUST is trading at $0.067 up 1% at the time of writing. The “unstable currency” has withdrawn 93% of its peg. And it’s unlikely to return to it without some major intervention, like a hard fork from TerraForm Labs.

In addition, TerraForm’s LUNA has downloaded a similar amount. As a result, the coin is trading at $0.00020 with a market capitalization of $1.35 billion and 6.5 billion tokens in circulation.

                Featured image from Flickr, and chart from

Source link

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *