Brazilian exchange Nox Bitcoin has announced that it will reimburse customers who lost money trading stablecoin UST. In this way, the exchange will cover the loss of investors who have kept their investment.
UST’s Auto Stake option will also be removed, explained Nox CEO João Paulo Oliveira. This function could be activated in the Nox app and offered UST earnings. Before the collapse, Auto Stake was offering a 15% return per year, with earnings paid daily.
According to Oliveira, the measure is part of an aid to customers who lost money after the collapse of the Terra network. By estimates, about $120 billion worth of value was destroyed in a matter of a few days.
“We understand that the best way to show our solidarity with customers who lost their money in this very delicate moment for the market is to cover their losses, even if that means limiting or cutting other internal budgets”, said Oliveira.
Criteria for reimbursement
As Nox’s communication advisor explained to CriptoFácil, the minimum balance in UST of customers between May 9th and 12th will be returned. The exchange will cover the difference in loss between the initial UST price and the current price.
The amount to be compensated will be paid in USDT stablecoin. That is, if the client had a UST before the collapse, and today the UST is worth $0.10, Nox will deposit 0.90 USDT as compensation.
There will be no maximum capital limit to be covered by the benefit. The only requirement is that the customer has left UST in their Nox account between May 9th and 12th. Anyone who meets this criteria will receive the amount directly into their Nox account, without having to make any requests.
After receiving the amount proportional to the invested amount, the client can trade other cryptocurrencies or request the withdrawal of the amount.
As Oliveira explained, trust in the community is extremely important and this influences the market in the long term. In this sense, helping the community, giving confidence to the market and thereby showing the entire crypto network that we are on the client’s side.
“In addition to gaining even more the trust of our investors, we also reinforce our long-term thesis with cryptocurrencies”, he concludes.
The UST of the Earth ecosystem (LUNA), whose value was pegged to the dollar, but did not have US currency reserves. Instead, the value of the UST was guaranteed through variations in the protocol, thus being an algorithmic stablecoin.
However, the united algorithmic model of the UST did not prove to be sustainable. And with that, both the stablecoin and the Earth governance token (LUNA) collapsed. A proposal is currently underway to overhaul the Terra network, which includes the end of the UST and a hard fork.
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