21Shares and Valour offer cash tender for terra ETP investors

Despite the virtual token’s near-worthlessness, 21Shares and Valour have made a voluntary cash tender available to investors for their shares in their respective terra exchange-traded products (ETPs).

Valour announced in a statement last month that it would provide investors 0.01 Swedish krona ($0.00089) in exchange for their stocks and that the participation deadline would be August 31.

In the meantime, 21Shares announced that it would publish all of the tender information for the 21Shares Terra Classic ETP (LUNA) in October.

One Terra token is currently worth $0.00023, down from its peak value of $98.70 in April. After its sister cryptocurrency, luna, depegged from the US dollar in May, the value of the token dropped.

The only other company that have introduced a terra ETP, VanEck, announced that it would not be offering a voluntary cash tender for its offering because it was skeptical of its worth to investors.

According to a VanEck spokeswoman, the company would take the best possible steps to safeguard the interests of its investors.

“A cash tender has not yet been made accessible since it is debatable whether doing so would be in the best interests of all investors, in our opinion. VanEck has, however, paid nothing for product management.

In May, VanEck and 21Shares paused creations and redemptions on their terra ETPs, while Valour altogether stopped trading after the value drop.

Later that month, after the exchange’s nominating committee stated that it could no longer be traded in a “fair and orderly way,” Valour delisted the Valour Terra ETP from the Nordic Growth Market.

The shares have been kept in an investing savings account ever since. Investors who chose not to accept the voluntary tender offer will be required to redeem their shares at the current, much lower market values of the underlying asset.

In contrast, 21Shares declared that it will keep running LUNA even though it acknowledged that trading in the security was unlikely to resume due to its lack of value.

According to the business, investors who decide to stay in the ETP would probably get money via airdrops anticipated to take place over the following three years.

The Terra Blockchain Network was renamed to Terra Classic in June, and 21Shares updated the name of the terra ETP to reflect this.

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