Nox Bitcoin is a cryptocurrency exchange platform operating out of Brazil. The platform has recently announced very grand and big news for UST investors. The cryptocurrency exchange claimed that it is going to use its commercial funds to recompense the investors for their losses. The news has been spreading on social media platforms like wildfire.
It is worth noting that Terraform labs native stablecoin UST lost its peg and crashed 99.9% in value last week. The incident has generated an air of FUD throughout the cryptocurrency market.
Under these dire circumstances, the UST and LUNA token holders are trying to find better ways to recover from their current losses. Nox Bitcoin has announced that it is going to refund the UST holders at a $1 rate and issue USDT stablecoin of Tether.
Nox Bitcoin reportedly invested 620K Reais that are $127K at the current exchange rate. The exchange platform has announced that it is spending these funds to compensate its clients for making for the losses of UST holders who lost a considerable amount of their investment during the recent Terra Forma labs fiasco.
A Twitter user who goes by the pseudonym of FatMan recently tweeted that the step is going to set a new precedent for cryptocurrency exchange platforms all over the world.
The tweet also claimed using the commercial funds from the funds of the company to make up for the losses of the clients is a noble step, and it will generate a lot of waves in the cryptocurrency market.
He also commented that the step of the Brazilian cryptocurrency exchange was in good faith, considering that these exchange platforms played an active role in the de-pegging of UST.
UST investors are currently waiting to vote on the new revival proposal for the Terra Chain by its founder and CEO, Do Kwon. His last proposal received a considerable amount of backlash from the UST community while garnering support from network validators.
However, for the lucky investors of Nox Bitcoin, the price of UST has been reinstated at $1 once again.
Nox Bitcoin to Compensate Customers with USDT
With the new recompensation plans of Nox Bitcoin, the exchange network will issue USDT in exchange for UST with a 1:1 ratio. The management of Nox Bitcoin claimed that the exchange platform is only reimbursing its clients with the difference between the market value of UST at $0.06 and the dollar peg-breaking point mark.
It means that an investor who holds 100 UST tokens will be able to get 94 USDT tokens. The plan has already been made official by Nox Bitcoin CEO Joo Paulo Oliveria.