Behind the Big Pump of USTC Price: The New Stablecoin Project Mint Cash Sparks Market Discussion

Recently, the price of USTC has experienced a significant rise, mainly due to the influence of the new stablecoin project Mint Cash in the Terra ecosystem. This article will introduce relevant information about the Mint Cash project and the market's reaction to it.

1. The Real Reason for the Big Pump in Prices

The core reason for the rise in USTC prices is not the community proposal circulating online, but is likely related to the new project Mint Cash that is about to be launched by former Anchor team members.

2. Mint Cash Project Introduction

Mint Cash is a stablecoin system backed by Bitcoin, developed based on the original codebase of Terra Classic.

3. Project Technical Architecture

Mint Cash will be an IBC chain based on Terra Classic, and its data availability layer may utilize Celestia. The stablecoin issuance will leverage Nomic's nBTC, and a new version of the Anchor Protocol will be released, named Anchor Sail. The new Anchor Sail will play an important role in the Mint Cash ecosystem and is a key link in the growth and anchoring of stablecoins.

4. Project Team Background

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

5. 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. Through the airdrop mechanism of Mint Cash, lock and burn a specified amount of USTC.

The current prevailing view is that USTC will be calculated at a valuation of 1 dollar, which is also an important factor that the market is optimistic about.

6. Expected Investment Returns

The current circulation of USTC is 9 billion, but it is expected that only 1/3 to 1/2 will participate in new projects. Based on a valuation of 1 dollar, the new project is estimated to be worth between 3 billion and 4.5 billion dollars. In comparison, the FDV of LUNA 2.0 is currently about 800 million dollars.

Investors can calculate a discount on the valuation of 1 dollar based on their own risk preferences. Before the price of USTC rises, it is calculated at 0.014 dollars, with a valuation of approximately 40 to 60 million dollars. The market generally considers this valuation to be low and with high return potential.

However, rational investors still need to understand the team background in depth and study the white paper, while investors with a higher risk tolerance may be more interested in this project.

7. Market Reaction

The information related to Mint Cash leaked to the rise in USTC price, taking 3-4 days or even nearly a week. Initially, the coin price hardly fluctuated, but the liquidity of USTC was quite ample. On a certain trading platform, the daily trading volume has surpassed 100 million and continues to grow.

It is worth noting that the goal of Mint Cash is not to pull the price of USTC back to $1, but to launch new projects. In short, the valuation expectations of investors for new projects will determine the current price trend of USTC.