Nox Bitcoin, a cryptocurrency exchange based in Brazil, decided to reimburse its customers who were victims of the fall of TerraUSD. Each lost UST will be revalued to $1 with Tether’s USDT.
Fall of Terra and UST, collateral damage
Some Brazilian media reported that Nox Bitcoin refunded all UST holders at a rate of 1 dollar with USDT. The cryptocurrency exchange had to pay the sum of 620,000 reais, or $127,000, for this.
In a tweet dated May 20, “FatMan,” a member of the Terra research forum, praised the initiative. A prospect of imitation by other exchanges cannot be ruled out.
” It is quite significant. A Brazilian cryptocurrency exchange has refunded all UST holders at a 1:1 rate with USDT. Likewise, this case can be used as a key precedent to argue that exchanges are responsible for UST losses. If criminal misrepresentations have been made. »
A $1 UST, a dream come true
It has been several days since the UST lost value: today, CoinMarketCap values it at $0.07516.
However, Nox Bitcoin will only refund 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 will be entitled to a refund of 93 USDT.
According to Joo Paulo Oliveira, CEO of Nox Bitcoin, the company decided to do this in order to restore the trust of its customers. And this even if it is not responsible for the losses suffered by customers who have invested in certain currencies on Nox Bitcoin.
Explanations:
” Clients have trusted us with staking and we understand that their trust is far more valuable than anything else. Therefore, we are going to reimburse these users, minus the expenses we would have incurred elsewhere, such as marketing. »
A “phew” 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 the reimbursements of the victims of the fall of Terra will depend enormously on the regulations of the country in which an exchange is established.
Also, it should be noted that Nox Bitcoin offers services of staking such as the Anchor protocol, which the UST relies on. The fact that this DeFi protocol can generate up to 20% annual return on the staking of UST allegedly contributed to the TerraUSD fiasco. It must be recognized that these returns are unsustainable.
Several investors are waiting for the continuation of the listing of UST and LUNA. 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, the UST posted a rise of 30.24%. But it is very likely that he will recover his peg initial after a major intervention such as hard fork suggested by Do Kwon. LUNA too took a near fatal hit after the TerraUSD fiasco.
Source : NewsBTC
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Mikaia ANDRIAMAHAZOARIMANANA
The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it
