How Mint Cash Caused USTC To Soar 400%
Mint Cash sounds like a new way to mint cash, and indeed, it could be.
Backed by multiple core members from ex-Terra and Anchor teams, the Mint Cash project lead has released a post on X, and thousands of crypto traders are getting hyped over it: What could possibly happen? Let's take a look at the whole picture by breaking them into simple questions.
What is Mint Cash?
The new project, Mint Cash is a price-stable and permissionless payments and savings currency system backed by Bitcoin.
Created by some of the former Terra and Anchor team members, as well as Aleph research, they have garnered huge attention to their mission of wanting to become UST 2.0.
Source: Mint Cash's official X account
What is USTC?
Supposedly an algorithmic stablecoin launched by Terra, USTC has gone through lots, and it has an old ticker name called UST, the so-called “UST 1.0”. Sounds familiar, right?
For those who joined the cryptocurrency world for a long time, it is hard to forget the painstaking May 2022, in which the collapse of UST and LUNA took place. After the fall, the LUNA ecosystem went through a rebranding and moved to a new blockchain, and TerraUSD (UST) got a new name called Terra Classic USD (USTC).
Then, what is the relationship between Mint Cash and USTC?
In simple words, this new project seems like an effort to help users who suffered losses from Terra's great fall. There are 2 ways for people to participate in the Mint Cash program:
If you were holding UST or LUNA prior to the crash on May 10th
Lock and burn specified amounts of USTC with Mint Cash's airdrop contract
This is where the interesting part comes in. According to a post by Mint Cash Project lead, Shin Hyojin, he mentions the airdrops can come with a valuation of 1 USTC = 1 USD. Users can do it by locking their USTC with the airdrop contract deployed on Terra Classic to receive the airdrop.
Mint Cash project lead’s comment on platform X (Source: twitter.com)
Why is the market so hyped?
This is because USTC holders might have a chance to make use of their token to join the new IDO or even regain some loss.
Ever since the Terra stablecoin crash incident in May 2022, the price of USTC has stayed low at $0.013 for long. 2 days after Hyojin's airdrop post went viral, we can see USTC spiked from $0.0133 to $0.0721, which experienced more than 400% surge (As of the time this article was published, it has gone back to $0.0375).
A total of 9 billion USTC is currently circulating on the market (Source: coingecko.com)
Aside from that, all the relevant coins like Anchor Protocol (ANC) and Terra Classic (LUNC) have also experienced a temporary spike, which proves the market has actually been getting excited about how Mint Cash can possibly revive the community, and this could be a good sign for its re-pegging journey.
Should the market get serious about the hype?
It is still a relatively new and unconfirmed idea, the reason being:
The whole project is still considered at a very early stage, with only whitepaper available at the moment;
The detailed algorithm of the airdrops is not announced, and it is also not a voted proposal but a comment on social media networks.
It is worth noting that 2 days later, Shin Hyojin posted another comment on X, mentioning that it was an initial valuation offer, which means the result may not always be the same. Aside from that, Terraform Labs mentioned they will not participate in the Mint Cash project in any capacity.
Too Early To Say
Although the whole scene is surrounded by lots of uncertainty, it is worth discussing their effort to revive a project that used to be a big hope of making cryptocurrency completely decentralized. After all, the Terra earthquake has caused many to lose confidence, and rebuilding "trust" is way harder than rebuilding any technology.
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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
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