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

Recently, the price of the USTC token from the original Terra ecosystem has experienced a big pump, mainly influenced by the anticipation of the new stablecoin project Mint Cash airdrop. This article will briefly introduce the Mint Cash project and its underlying team, as well as the market's expectations for this project.

1. The Real Reason Behind the Big Pump in Prices

The core reason for the rise in USTC prices is not the community proposals circulated externally, but rather news related to the new project Mint Cash and the new version of the Anchor Protocol, which is likely connected to former Anchor team members.

2. Mint Cash Project Introduction

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

3. Project Technical Architecture

Mint Cash is an IBC chain originating from Terra Classic, expected to use Celestia as a data availability layer, issue stablecoins using Nomic's nBTC, and launch a new version of the Anchor Protocol called Anchor Sail on-chain. Anchor Sail plays a key role in the growth and anchoring of stablecoins within the Mint Cash ecosystem.

4. 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 the Cosmos SDK.

5. Mint Cash Airdrop Mechanism

The Mint Cash plan will launch a cold start airdrop in two ways:

1. Users who held UST or LUNA before the crash on May 10, 2022. Users who lock and burn a specified amount of USTC through the Mint Cash platform 2)

Although the specific airdrop algorithm has not been made public, market rumors suggest that USTC will be calculated at a valuation of 1 dollar for the airdrop shares, which is one of the reasons for the emergence of FOMO sentiment in the market.

6. Investment Return Analysis

Currently, the circulation of USTC is about 9 billion, but it is expected that only 1/3 to 1/2 will participate in new projects. Based on a valuation of 1 USD, the valuation of new projects may be between 3 billion and 4.5 billion USD. In comparison, the current fully diluted valuation of LUNA 2.0 is about 800 million USD.

If calculated at the price of 0.014 dollars before the big pump, the valuation range could be between 40 million to 60 million dollars. Market reactions indicate that investors generally believe this valuation is low and has a high investment return potential.

However, rational investors still need to深入了解团队背景并研究项目白皮书, and investors with a higher risk appetite may be more interested in such projects.

7. Market Reaction

The surge in USTC prices from related concepts took about 3-4 days, or even close to a week. It is worth noting that USTC has good liquidity, with the daily trading volume on a single trading platform exceeding 100 million USD, and it continues to grow.

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