The crash of the Terra ecosystem and its stablecoin TerraUSD (UST) was completely unexpected for many, and the massive drop in value was very painful for many. Some people who had UST on trading platforms have been lucky, because they received compensation. A Brazilian exchange is doing it right, where victims get 100% of the lost amount back.
UST strikers get compensation
It would be the exchange Nox Bitcoin. That writes Portal do Bitcoin† the news does not seem to have been confirmed by the trading platform itself yet. Like many other platforms, Nox allowed users LUNA and UST to strike to achieve returns. Nox explains to Portal do Bitcoin that customer trust is much more important than the financial loss it incurs by compensating its customers. It appears to be specific to traders who have applied staking to UST. Little is said about Terra’s second token, LUNA. It is also unclear whether non-strikers are also compensated.
It is not clear whether a reference date has been chosen, as the token is still tradable. The price is not stable, as you would expect from a stablecoin. There is as yet no newpeg‘ which should keep the price stable against the dollar. The trading platform states that if UST is currently worth 0.06 USD, then 0.94 USD will be deposited into your account. However, it is not about regular dollar bank balances, but USDT.
Also wouldn the marketing costs that Nox Bitcoin has incurred are still deducted from it. Nox CEO Joao Paulo Oliveira estimates that at least 620,000 Brazilian real (120,000 euros) will be spent on the action.
UST continues to fall
The USD stablecoin UST began its decline on May 9. But it doesn’t seem to have stopped there yet. Meanwhile, the token is only worth 0.05 USD, instead of 1 USD it should be worth. So a drop in value of almost 95%. In fact, LUNA, the token of the entire ecosystem, has gone from almost $100 just before the crash to $0.0001.
In the meantime, there are plans for a restart, which many are in favor of. But at the same time, Terra is under investigation by the South Korean police, and the legal team has left.