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Anticipating Mint Cash airdrop, Terra stablecoin USTC surges over 400% in three days.

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Anticipating Mint Cash airdrop, Terra stablecoin USTC surges over 400% in three days.

Due to the anticipation of the airdrop for the new project Mint Cash, USTC, formerly known as Terra USD, UST has surged by 417% from $0.013 to $0.069 since the 25th.

Mint Cash: BTC Collateralized Stablecoin

According to the whitepaper, Mint Cash is a stablecoin system fully collateralized by Bitcoin, based on the original Terra Classic code, with core developers including former Anchor Protocol team members.

The team leader Shin Hyojin emphasized that Mint Cash, unlike Terra's algorithmic stablecoins, is closer to DAI in mechanism compared to UST.

Although Mint Cash was announced by the official team in October, a tweet from former Terra and Anchor Protocol developers caused the precursor of USTC to surge more than five times within three days.

Anticipating the Mint Cash Airdrop? Speculators Flock to USTC

Former Terra and Anchor Protocol developer Daniel Hong tweeted about two ways to participate in Mint Cash:

  1. Hold UST or LUNA before the crash on May 10, 2022

  2. Lock and burn a specific amount of USTC in the Mint Cash airdrop contract

This caused USTC to surge by 417% from the 25th to now, rising from $0.013 to $0.069.

USTC Thirty-minute chart

Understanding USTC Correctly

Founder of BV DAO Chen Mo wrote about the market situation of USTC, mentioning:

Airdrop Mechanism Still Unclear

Mint Cash team leader Shin Hyojin previously stated that detailed airdrop mechanisms cannot be disclosed, but his remarks ignited the market's FOMO sentiment:

To receive more airdrops, you must lock more USTC in the airdrop contract on Terra Classic. We will airdrop an equivalent amount of tokens based on a valuation of 1 USTC:1 USD, which may change, representing up to a 99% discount.

When questioned, Shin Hyojin also emphasized that the initial price of Mint Cash would be $1, but due to market mechanisms, there is no guarantee that USTC can always be redeemed at 1:1.

Buying USTC to gamble on new project airdrops, what is the expected return?

Chen Mo pointed out that the circulating supply of USTC is 9 billion, but not all USTC will flow into and be locked in Mint Cash, which should be reasonable at 1/3 to 1/2, with the circulation of the new project ranging between 3 to 4.5 billion.

He stated:

Calculating based on the USTC price before the surge of $0.014, the market value of the new project is approximately $40 to $60 million, which the market clearly considers undervalued. Mint Cash's goal is not to bring USTC back to $1, but to launch a new project. The public's valuation expectations of the new project determine the current price expectations of USTC.