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Behind the big pump of USTC: Mint Cash's new stablecoin project ignites market expectations
Behind the Surge in USTC Prices: The New Stablecoin Project Mint Cash Sparks Market Follow
Recently, the price of USTC has seen a significant increase, mainly influenced by the airdrop expectations of the new stablecoin project Mint Cash in the Terra ecosystem. Let's take a look at the Mint Cash project and the team behind it, as well as market expectations.
1. The Real Reasons for Price Increase
The rise in USTC prices is not due to the community proposal rumored from the outside, as that proposal is still in the forum discussion stage. The real reason is likely the upcoming new project Mint Cash and the new version of Anchor Protocol from former Anchor team members.
2. Mint Cash Project Introduction
Mint Cash is a stablecoin system backed by Bitcoin, with its code based on the original Terra Classic.
3. Project Technical Architecture
Mint Cash will act as an IBC chain based on Terra Classic, with its data availability layer possibly using Celestia. The stablecoin issuance will utilize Nomic's nBTC, and a new version of the Anchor Protocol will also be launched. The new version of the Anchor Protocol plays a key role in the Mint Cash ecosystem and is crucial for the growth and anchoring of stablecoins.
4. Development Team Background
The core developers come from the former Anchor team and Aleph Research. Some developers also plan to collaborate with other projects to jointly build Polaris EVM support based on Cosmos SDK.
5. The Launch Method of Mint Cash
Mint Cash will be launched in cold start through the following two methods:
The current rumor 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. Potential Return Analysis
The market has different expectations regarding the valuation of the Mint Cash project. Based on the current circulation of USTC at 9 billion, if 1/3 to 1/2 of USTC participates, the new project valuation could be between 3 billion and 4.5 billion USD. In contrast, the current fully diluted valuation of LUNA 2.0 is approximately 800 million USD.
Considering the previous price of USTC at $0.014, the market seems to believe that a valuation of $30-60 million is too low, indicating significant upside potential. However, investors also need to consider factors such as team strength and project feasibility.
7. Market Reaction
It took about 3-4 days or even nearly a week for the relevant information to flow out and for the USTC price to rise. The market liquidity of USTC is relatively good, with the daily trading volume of a single trading platform exceeding 100 million yuan and still continuing to grow.
It is worth noting that the goal of Mint Cash is not to pull the USTC price back to 1 dollar, but to launch new projects. Investors' valuation expectations for new projects will directly affect the price trend of USTC.