Behind the big pump of USTC: The new stablecoin project Mint Cash attracts market follow

Recently, the price of USTC has risen significantly, mainly influenced by the anticipation of the Mint Cash airdrop from the new stablecoin project in the Terra ecosystem. Industry insiders provided a brief introduction to the Mint Cash project and its team, and analyzed the market expectations and other situations.

1. The Real Reasons for Price Rise

The core reason for the rise in USTC prices is likely the upcoming new project Mint Cash and the new version of the Anchor Protocol, which will involve former Anchor team members. It is not the community proposal circulated externally; that proposal is still at the forum discussion stage.

2. Mint Cash Project Introduction

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

3. Project Architecture Analysis

Mint Cash is an IBC chain originating from Terra Classic, and its DA layer may utilize Celestia. The stablecoin issuance will leverage Nomic's nBTC, while a new version of the Anchor Protocol will also be launched. The new version of Anchor plays a key role in the growth and anchoring of stablecoins in Mint Cash.

4. Project Team Background

The core developers come from the former Anchor team and Aleph Research. Some developers also plan to build Polaris EVM support based on Cosmos SDK together with other projects.

5. Mint Cash Launch Method

Mint Cash will conduct a cold start through USTC in two ways:

(1) Users who held UST or LUNA before the collapse on May 10, 2022 (2) Lock and burn a specified amount of USTC through the airdrop of Mint Cash.

The current rumor is that USTC will be airdropped at a valuation of 1 dollar, which is also an important reason why the market is optimistic.

6. Potential Return Analysis

Based on a circulation of 9 billion USTC, if 1/3 to 1/2 of the USTC enters new projects, with a valuation of 1 dollar, the valuation of the new projects could be between 3 billion to 4.5 billion dollars. In comparison, the current FDV of LUNA 2.0 is about 800 million dollars.

If calculated at the previous price of $0.014, the valuation is approximately $40 million to $60 million. Based on market reactions, this valuation is considered low and has a high odds.

7. Market Reaction

The price of USTC has experienced a big pump, taking about 3-4 days or even nearly a week to emerge from the related concepts. USTC has good liquidity, with a single day's trading volume on a certain trading platform exceeding 100 million USD, and it continues to grow.

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