Nox Bitcoin Will Refund $1 UST To Customers
If you’ve purchased TerraUSD coins from the Brazilian cryptocurrency exchange Nox Bitcoin, you’ll get your money back in full.
The Nox Bitcoin exchange has repaid all UST holders at a $1 rate using Tether’s USDT after a story in the local media on May 20.
For 127,000 Brazilian reals, the crypto brokerage business reportedly paid. The exchange gave compensation to all of its clients who lost money as a result of the collapse of the Terra ecosystem.
According to “FatMan,” a Terra research forum member, the ruling might establish a precedent for other crypto exchanges throughout the world.
As mentioned in the tweet, This is a big deal. UST holders at a Brazilian cryptocurrency exchange have been given USDT refunds at a 1:1 exchange rate. This case may also be used to establish that exchanges are accountable for UST losses, as it sets a precedent. If there were tortuous misrepresentations.
For Those Lucky Enough, UST Is Now Available For Only $1
As a result, the exchange said it would reimburse consumers for the difference in value between the current UST rate and the dollar peg from which it had fallen. This means that a 100 UST at $0.06 holder will get 94 USDT back.
To Joo Paulo Oliveira, CEO of Nox Bitcoin, Nox Bitcoin is not liable for customers’ losses when they invest in various currencies on the site. In the end, though, they stepped in to restore client confidence.
He went on to say; Customers have placed their faith in us, and we appreciate that more than anything else. Because of this, we’ll be reimbursing these customers after deducting the costs we’d incur elsewhere, including marketing.
The announcement was a breath of fresh air and a boost to the bitcoin community. However, the Nox Bitcoin exchange’s judgement matches Brazilian consumer protection laws.
Staking services, such as Anchor Protocol, are also available on the exchange. Due to the high APY afforded by the DeFi protocol, it was widely seen as the primary factor in UST’s demise.
UST and LUNA have been listed, and now everyone is waiting to see what happens next. Oliveira said, “It is conceivable that this may no longer exist in the near future, but in an uncertain crypto market, you never know.”
UST is now trading at $0.067, up 1% since publication, according to Tradingview. There has been a 93% withdrawal from the “unstable coin” peg. A hard fork by TerraForm Labs is the only way to bring it back to its former glory.
The TerraForm’s LUNA, on the other hand, has deposited the same sum. There are 6.5 trillion tokens in circulation and the currency is now trading at $0.00020, with a market worth of $1.35 billion.