based in Brazil cryptocurrency exchange Nox Bitcoin, TOP announced that it would spend 620,000 Brazilian reals to reimburse its owners.
The exchange will compensate for the difference between the current value of the UST (about $0.04) to ensure $1 for every 1 UST held by each UST holder.
Cryptocurrency Exchange Nox Returns Victims of Bitcoin Terra to UST Investors
Nox Bitcoin allowed users to stake their UST to earn a return like many exchanges around the world.
Exchange offering up to 20% APY for staking stablecoins Anchor Protocol reportedly staked tokens on behalf of clients through
Nor is there any insurance or guarantee that would require the exchange to reimburse its owners. Nox Bitcoin CEO Joao Paulo Oliveira said:
“Our customers have trusted us to stake, and we know their trust is more valuable than anything else. We will reimburse these users except for expenses we have incurred elsewhere, such as marketing.”
Only investors who purchased UST before the de-peg event will be refunded for their tokens. Both LUNA and UST are still listed on Nox Bitcoin, with LUNA down over 99% and UST over 90%.
Oliveira believes that Nox Bitcoin’s mission is not to “prevent customers from putting themselves at risk” because it also means “to prevent them from making money.”
Oliveira believes that Nox Bitcoin’s role is to develop quality projects that its clients can invest in.
Some Think This Step Of The Stock Market Isn’t Purely Goodwill
However, the rationale for refunding its users may not be just about creating goodwill towards them among their customers.
FatMan of Terra Research Forum thinks that the Nox Bitcoin cryptocurrency exchange took such a step because of Brazilian laws.
“Brazil’s consumer law is quite strong, penalizing businesses that lie to customers or misrepresent the risks.”
*Not investment advice.