TerraUSD fiasco: Nox Bitcoin refunds customers $1 per UST

Nox Bitcoin, a Brazil-based cryptocurrency exchange, has decided to compensate its clients who fell victim to TerraUSD’s fall. Each lost UST is revalued to $1 using Tether’s USDT.

Fall of Terra and UST, collateral damage

Some Brazilian media reported that Nox Bitcoin refunded all UST holders $1 with USDT. For this, the cryptocurrency exchange had to pay 620,000 reais or $127,000.

In a May 20 tweet, FatMan, a member of research forum Terra, praised the initiative. Imitation by other exchanges cannot be ruled out.

It’s pretty significant. A Brazilian cryptocurrency exchange has refunded all UST holders at a 1:1 rate with USDT. Likewise, this case can be used as an important precedent to argue that exchanges are to blame for UST losses. If criminal misrepresentations have been made. »

A $1 UST, a dream come true

UST has been losing value for a few days: CoinMarketCap rates it at $0.07516 today.

However, Nox Bitcoin only reimburses the difference between the current UST rate and the parity of the dollar from which it collapsed. Thus, a holder of 100 UST at $0.07 is entitled to a refund of 93 USDT.

According to Joo Paulo Oliveira, CEO of Nox Bitcoin, the company made the decision to restore trust among its customers. And this even if it is not responsible for the losses of customers who have invested in certain currencies on Nox Bitcoin.

Explanations:

Customers trust us to stake and we understand that their trust is far more valuable than anything else. Therefore, we will use these users minus costs incurred elsewhere, such as B. Marketing, would have arisen. »

A “poof” of relief in the cryptosphere

The news was welcomed with open arms by crypto enthusiasts. Note, however, that this decision by Nox Bitcoin has something to do with Brazilian regulations on customer protection. This means that compensation for victims of Terra’s demise will depend heavily on the regulations of the country where an exchange is set up.

It should also be noted that Nox Bitcoin offers services from Mark out like the Anchor Protocol that the UST relies on. The fact that this DeFi protocol can generate up to 20% annual returns on the Mark out UST allegedly contributed to the TerraUSD fiasco. It must be recognized that these returns are not sustainable.

Several investors are waiting for the listing of UST and LUNA to continue. Half optimistic and half skeptical, Oliveira said:

It is possible that this will no longer exist in the near future. But you never know what can happen in an unpredictable crypto market. »

At the time of writing, UST is up 30.24%. But it is very likely that he will regain his connection initially after a major intervention such hard fork suggested by Do Kwon. LUNA was also almost fatally hit after the TerraUSD fiasco.

Source: NewsBTC

Receive a roundup of what’s new in the cryptocurrency world by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!

avatar

Mikaia ANDRIAMAHAZOARIMANANA

The blockchain and crypto revolution is underway! And the day the impact is felt on the world’s most vulnerable economy, I will say against all hope that I had something to do with it


#TerraUSD #fiasco #Nox #Bitcoin #refunds #customers #UST

Leave a Comment

Your email address will not be published.