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Brazilian Crypto Exchange Refunds $1 UST To Customers

A Brazilian crypto exchange has set rare precedence at the moment after it reportedly refunded customers’ Terra UST coins. The crypto exchange has used its funds to reimburse customers for the total value of their UST tokens.

Reports from the local news outlets indicate that the exchange, Nox Bitcoin, has completed the refunding rounds to all UST holders on its platforms at $1 using the Tether USDT.

According to the reports, the exchange firm spent close to $127,000 to refund all its customers affected by the recent Terra market collapse.

And speculation has started flying as to the motive behind the move. While it has set a precedent for other exchanges to follow suit, another argument has arisen as to the need for crypto service providers to bear the UST losses suffered by their customers.

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A Dollar for the Lucky Few

The exchange stated that it was willing to cover the difference in the dollar rate before the collapse of the UST dollar peg. This implies that a UST holder with 100 UST valued at $0.06 will have a refund of 94 USDT.

The CEO of Nox Bitcoin, João Paulo Oliveira, disclosed that not all customers are eligible as only those who stake in the UST products will be reimbursed. He, however, notes that the intervention was done to make the customers have confidence in the firm.

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The CEO further added that clients had trusted the exchange with their stake, which is the best way to repay the trust to the customers. As a result, the company has decided to reimburse its customers despite the added expense in the firm’s wallet.

Nox Bitcoin offers various staking services, like the one used by most UST holders on the Anchor protocol.

The decentralized protocol offers a high yield to investors, which is considered unsustainable and is widely seen as part of the recent Terra Network collapse.

Meanwhile, as noted by the CEO, the exchange is waiting to see the following line of action concerning the continued listing of LUNA and UST on its platform. The Nox Bitcoin CEO revealed that this might perhaps be the end of the Terra ecosystem.

However, the unpredictability of the crypto industry offers room for optimism as anything can happen at the speed of light, and the resurgence of the Terra network can still occur.

UST Continues to Plunge Further

At the time of publication, the Terra UST had further dropped another 23% in a day to trade at $0.056, as revealed by CoinGecko.

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UST is steadily regarded as an “unstable coin.” It has retraced 94% from its dollar peg and might not return to its previous value without intervention from its parent company.

Therefore, any comeback will require stronger will by the Terraform Labs team to bounce back.

Terra’s native token, LUNA, has also dumped significantly and still has a sizeable 6.5 trillion coins in circulation with a market capitalization of $688 million at writing.


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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