Prime Trust parent company Prime Core Technologies, a leading provider of financial infrastructure for the digital economy announced that it has incurred a loss of $8 million due to its investment in TerraUSD (UST), a stablecoin backed by the Terra blockchain.
According to a blog post published by Prime Trust on August 24, 2023, the company had invested $10 million in UST in July 2022, as part of its strategy to diversify its portfolio of stablecoins and offer more options to its customers. However, due to a technical issue on the Terra network, UST experienced a sudden drop in its peg to the US dollar on August 22, 2022, falling as low as $0.0086.
Prime Trust stated that it had immediately liquidated its UST holdings at a loss of $8 million, and that it had taken steps to prevent such incidents from happening again. The company also assured its customers that their funds were safe, and that the loss did not affect its operations or solvency.
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“We deeply regret this unfortunate event and the impact it has had on our stakeholders. We take full responsibility for our actions, and we are committed to learning from this experience and improving our risk management processes. We remain confident in the potential of the Terra ecosystem, and we will continue to support innovative projects in the digital economy,”
In a surprising move nCOP, the first Colombian Peso Stablecoin, has been launched on Polygon, the leading platform for Ethereum scaling and infrastructure development. nCOP is a fully collateralized and regulated stablecoin that aims to provide a fast, secure and low-cost way to send and receive payments in Colombia and beyond.
nCOP is backed 1:1 by Colombian Pesos (COP) held in a trust account by a licensed financial institution. nCOP holders can redeem their tokens for COP at any time, subject to KYC/AML verification. nCOP is also compliant with the Colombian legal framework and supervised by the Superintendencia Financiera de Colombia (SFC), the financial regulator of the country.
By launching on Polygon, nCOP users can benefit from the high scalability, low latency and near-zero gas fees of the network. Polygon is compatible with Ethereum, which means that nCOP can be easily integrated with the existing DeFi ecosystem and applications. nCOP users can also access Polygon’s growing suite of products and services, such as Polygon Bridge, Polygon SDK, Polygon PoS and Polygon Studios.
nCOP is designed to serve as a bridge between the traditional and crypto economies, enabling more financial inclusion and innovation in Colombia and the region. With nCOP, users can:
Send and receive remittances across borders with minimal friction and cost.
Access a range of DeFi services such as lending, borrowing, trading and investing.
Hedge against inflation and currency devaluation.
Support local businesses and entrepreneurs that accept nCOP as a payment method.
Participate in the governance and development of the nCOP ecosystem.
To celebrate the launch of nCOP on Polygon, they are offering a limited-time promotion for early adopters. For every 1000 nCOP you buy or mint on Polygon, you will receive 10 MATIC tokens as a reward. This offer is valid until September 30th, 2023, or until the supply of 100,000 MATIC tokens is exhausted. We are thrilled to bring nCOP to Polygon and to join the vibrant community of builders and innovators on the network. We believe that nCOP will open up new possibilities for economic empowerment and social impact in Colombia and beyond, the communique reads.