Brazilian Crypto Exchange Nox Bitcoin To Reimburse Its UST Holders

Nox Bitcoin wishes to help UST holders who experienced loss in value, because of the recent de-pegging of UST.

Nox Bitcoin’s Apparent Rescue Mission

According to a report published by news outlet, Portal do Bitcoin, Nox Bitcoin, a Brazilian cryptocurrency exchange recently released an official announcement, stating that they are refunding all their customers who were holders of UST, to assist them in their bad experienced of the UST de-pegging. Nox Bitcoin highlighted that it will be collecting more than 620,000 Brazilian reais to support the UST holders in the exchange.

As to how the exchange will handle the value difference, Nox Bitcoin will make sure that every single UST holder on the exchange receives a dollar for each single UST they possessed, basically implementing a 1:1 return ratio policy. The policy will also ensure that only those customers will be refunded who invested in UST before the de-pegging event came into scene. As of now, LUNA and UST are still listed on the exchange, still carrying massive valuation drops of more than 90%.

Nox Bitcoin enabled its customer base to stake their respective UST to gain significant returns, however this is quite a common feature provided by many popular cryptocurrency exchanges around the world. The exchange utilized the power of the Anchor protocol to let customers stake their tokens, promising them an annual percentage yield through staking.

Issues with Nox Bitcoin’s Refund Policy

The exchange also does not have any guarantee which would ensure the refunds, however CEO Joao Paulo Oliveira stated that their customers have trusted them regarding staking, and it is important that the trust we gained through those customers remains intact, as it is more precious to them, so the exchange will effectively refund the affected users.     

Joao Paulo also mentioned that the exchange’s responsibility does not lie in averting users from taking risks, but its responsibility is to bring up unique and feature rich projects for its users to engage and invest into. Despite Nox Bitcoin’s efforts in the refunds, many researchers believe that this refunding scheme might not be in connection with overall goodwill in the userbase and that the Brazilian court has strict policies towards companies who deceive their users or develop artificial risks.

Currently there is a poll being held that decides if the Terra Blockchain must be forked for developing a completely new LUNA coin. Even if the refunds are issued and users are given the newly generated LUNA tokens, the issue regarding the source of the additional value comes forth.

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