Finally, there’s some good news for the crypto community, especially for investors who invested in Terra LUNA and TerraUSD/ UST. The catastrophic collapse of Terra LUNA has destroyed the lives of smallholders who are worried they will end up on the street because of the Bitcoin mayhem. But Nox Bitcoin, a cryptocurrency exchange in Brazil, has changed that vision for LUNA and UST investors based out of Brazil.
In a move that no other cryptocurrency exchange has ever attempted, Nox Bitcoin has taken the unprecedented move to resuscitate investors from the Terra mishap. The crypto exchange is using its own funds to refund investors for their TerraUSD coins at a full rate. Reports from a local news agency said that Nox Bitcoin reimbursed all LUNA-UST investors at a $1 rate with Tether’s USDT.
Crypto analyst and enthusiast Fat Man, in his recent tweet, said: “This is highly considerate. A Brazilian cryptocurrency exchange has reimbursed all LUNA-UST investors at a 1:1 rate with Tether’s USDT. This move may be used as a major example to indicate that crypto exchanges are responsible for UST losses if complex misrepresentations were made.” Fat Man is also known for his tiered repayment proposal to UST holders made at the Terra Research Forum.
Nox Bitcoin’s Generous $127,000 Move
According to reports from a local news agency, Nox Bitcoin used around 620,000 reais (approx. $127,000) in funds to refund all of its customers who lost money in the LUNA-UST stablecoin collapse. The release of this news has been met with huge applause and relief in the crypto ecosystem. The move by Nox Bitcoin reflects the stringent rules and regulations regarding customer protection. The country’s government punishes companies that deceive customers or intentionally cover up the risks of crypto transactions. Global investors are waiting to see if other crypto companies will follow Nox Bitcoin’s steps.
The crypto exchange promised to reimburse the difference between the current value for UST and the dollar peg from which it declined. This indicates that an investor who had 100 UST valued at $0.06 will receive a reimbursement of 94 USDT.
João Paulo Oliveira, the chief executive officer (CEO) at Nox Bitcoin, said that the company is not required to refund its customers’ losses who invest in specific tokens on its exchange. But they preferred to take this step in order to ensure their customers’ privacy. He further added: “Customers have trusted us with investing and we understand that their trust is much more important and valuable to us than anything else. We’re going to refund these users minus the costs we’ve had elsewhere, including marketing.”
The company also provides staking services, including the one leveraged by the Anchor Protocol — Terra’s lending program. This protocol offered a potential 20% APY on UST staking, and it became popular when it came under fire because of Terra UST’s collapse and unsustainable returns.
Oliveira said that Nox Bitcoin is waiting to see the next move regarding Terra LUNA and TerraUSD/ UST listings. Despite not being supposed to fail, the Terra stablecoins still failed.
On the other hand, the cryptocurrency market is highly volatile and unpredictable, and anything can happen at any time. Nox Bitcoin’s executives are optimistic about Terra’s recovery in a humble shift of trust. However, as the Terra debacle continues, several global cryptocurrency exchanges have released a statement highlighting they will delist both of Terra’s stablecoins in an effort to prioritize customer safety and privacy.