Behind the Big Pump of USTC: The New Stablecoin Project Mint Cash Attracts Market Attention

Recently, the price of USTC has experienced a significant rise, mainly influenced by the airdrop expectations of the new stablecoin project Mint Cash in the Terra ecosystem. This article will briefly introduce the Mint Cash project and its underlying team, as well as the market's reaction to it.

Mint Cash Project Overview

Mint Cash is a stablecoin system backed by BTC, developed based on the original Terra Classic codebase. The project is an IBC chain originating from Terra Classic, and may utilize Celestia for data availability. The stablecoin issuance will leverage Nomic's nBTC, while also releasing a new version of the Anchor Protocol, named Anchor Sail.

Anchor Sail plays a key role in the Mint Cash ecosystem, responsible for the growth and anchoring of stablecoins.

Project Team Background

The core developers of Mint Cash come from the former Anchor team and Aleph Research. It is reported that some developers also plan to collaborate with CosmWasm and Berachain to jointly build Polaris EVM support based on Cosmos SDK.

Mint Cash Launch Method

The Mint Cash plan will be launched in two ways:

1. For users who held UST or LUNA before the crash on May 10, 2022
2. Lock and destroy a specified amount of USTC through the Mint Cash airdrop mechanism.

Although the specific airdrop algorithm has not been made public, it is rumored in the market that USTC will be calculated at a valuation of 1 dollar, which has become an important factor favored by the market.

Market Reaction and Expectations

Since the self-relevant information was released, the USTC price has experienced a significant rise. On just one trading platform, the daily USTC trading volume has surpassed 100 million dollars and continues to grow. However, it is important to note that Mint Cash's goal is not to bring USTC back to 1 dollar, but to launch new projects.

Currently, the circulation of USTC is about 9 billion, but it is expected that only one-third to one-half will participate in new projects. Based on 1 US dollar, the valuation of new projects may be between 3 billion to 4.5 billion US dollars. In comparison, the current fully diluted valuation of LUNA 2.0 is about 800 million US dollars.

Investors need to assess the price prospects of USTC based on their own valuation expectations for new projects. Rational investors should thoroughly understand the team's background and carefully read the white paper, while those with a higher risk appetite may be more interested in this project.

Overall, the emergence of the Mint Cash project has brought new development opportunities for USTC, but investors still need to carefully assess the related risks and potential returns.