Brazil-based crypto exchange Nox Bitcoin has declared its plan to spend 620 million Brazilian reais to pay UST holders. As per the plan, the crypto exchange will cover the difference between the present value of UST ($0.08) and $1 for every 1 UST retained by the exchange’s user. Both LUNA and UST are still listed on Nox Bitcoin, with LUNA down more than 95% and UST down more than 90%.
Brazilian crypto exchange Nox Bitcoin plan to refund for UST holder
Nox Bitcoin, like many other exchanges throughout the world, allows customers to leverage their UST coins for a return. According to information, the exchange staked the tokens on behalf of its clients using Anchor Protocol, which promised up to 20% APY on stablecoin staking. Joao Paulo Oliveira, CEO of Nox Bitcoin, stated:
“Clients have placed their faith in us to stake of UST. We recognise that their trust is far more precious than anything else. We will reimburse these users after deduction of any expenditures incurs elsewhere, such as marketing.”
He further informed that the investors who purchased UST prior to the depreciation will be paid for their tokens. The coins are still listed on the exchange and the exchange is waiting for the following steps to see which direction the market moves.
According to Oliveira, Nox Bitcoin’s job is not to prevent clients from taking risks. It would eventually prevent them from gaining money. He sees the exchange’s function as a provider of high-quality assets for its consumers to invest in.
Why does Nox Bitcoin want to refund?
However, the reason for refunding its consumers may not be just to build goodwill among its customers but there may be so many reasons. FatMan (from the Terra Research Forum) has remarked that consumer legislation in Brazil are highly strict and enterprises that mislead clients or misrepresent hazards face severe penalties.
Terra network fork plans
There is presently a vote on the 27th of May to determine if the Terra network should be divided to generate a new LUNA coin alongside a Luna Classic (LUNC) coin. Presently, there is no information available on what will happen to cryptocurrencies minted as a result of the forthcoming Terra blockchain fork.
Any coins issued as a result of a blockchain fork will be distributed to the exchange’s wallet. It will then be up to various exchanges to distribute those coins to individual investors.
According to one argument, forking the Terra blockchain and after compensation, the money will increases supply by up to $16 billion. In such an instance, the issue becomes, “Where does this extra value originate from?
