Call now TerraClassicUSD (USTC)the stablecoin linked to the LUNA ecosystem increased in value 300% in just 4 days and reappeared among the 100 largest cryptocurrencies on the market. All the Earth (LUNA) and the TerraClassic (LUNC) rose 19% It is 58%respectively in the same period.
The main reason for the increase would be the developers’ idea to revive the project, this time backed by the stablecoin in Bitcoin. Going further, they also announced an airdrop for old and new cryptocurrency holders.
Another reason that justifies this 300% increase was the listing of the stablecoin on Binance. While the broker announced on Monday (27) the addition of USTC to the futures market, this Wednesday (29) it also announced the addition of the USTC/FDUSD and USTC/TRY pairs to the spot market.
Developers want to revive the Earth’s ecosystem
TerraUSD (UST) was an algorithmic stablecoin, meaning it had parity with the US dollar even without being 100% backed. The idea failed miserably because this equality was lost. In just a few days, approximately $60 billion invested in both UST and Terra (LUNA) evaporated.
Many believe that the collapse of LUNA was the first piece that caused a huge domino effect on the industry, driving other giants into bankruptcy. Do Kwon, the main name behind the project, was arrested. Now other developers plan to revive the LUNA ecosystem.
Unlike the first attempt, the new stablecoin would not be algorithmic, but would be fully backed by Bitcoin. The developers’ plans also include an airdrop for those affected by the collapse of Terra and TerraUSD.
“As part of compensation efforts to do our part to recover from the devastating losses caused by the Terra stablecoin crash, the Mint Cash and Anchor Sail team will also conduct an airdrop program.”
10/ As part of compensation efforts to do our part to recover from the devastating losses caused by the Terra stablecoin crash, the Mint Cash & Anchor Sail team will also be conducting an airdrop program.
— Daniel Hong (@hello_unifiedh) November 24, 2023
Shortly after the tweet, the now named TerraClassicUSD (USTC) began to rise. Although it is still far from the $1 mark, the increase can already be seen on the stablecoin’s entire chart. In the last four days, USTC has increased in value by 300%, from $0.013 to $0.05.
TerraClassic (LUNC) appreciated 58% during the same period. At its peak, LUNC was worth $116, today the price is around $0.0001. Finally, Terra (LUNA), a fork that eventually reverted to the project’s original name, appreciated 19% on the week.
At the time of writing, TerraClassicUSD (USTC) is the 93rd largest cryptocurrency by market cap after its return. TerraClassic (LUNC) appears in 73rd place and Terra (LUNA) in 98th place.
Binance lists TerraClassicUSD (USTC), LUNA’s stablecoin
On Monday (27), Binance announced the listing of TerraClassicUSD (USTC) on its futures market, contributing to the increase. According to the announcement, investors can now trade the stablecoin with up to 50x leverage.
On Wednesday (29), the broker announced the listing of TerraClassicUSD (USTC) on its spot market. For now, the stablecoin can be traded against the First Digital USD (FDUSD) and the Turkish Lira (TRY). Negotiations will start this Wednesday (30).
Finally, TerraClassicUSD needs to appreciate about 1,800% to return to parity with the dollar, a distant goal. In any case, investors are speculating about the airdrop promised by the developers.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
