Behind the Surge in USTC Prices: The New Stablecoin Project Mint Cash Draws Market Attention

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. Industry insiders provided a brief introduction to the Mint Cash project and its underlying team, and analyzed the market expectations and other situations.

1. The Real Reasons for Price Increase

The rise in USTC price is not due to the community proposal, which is still in the discussion stage. The real reason is likely the upcoming new project Mint Cash and the new version of the Anchor Protocol from former Anchor team members.

2. Mint Cash Project Introduction

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

3. Project Architecture Analysis

Mint Cash is an IBC chain originating from Terra Classic, which may use Celestia as the DA layer, utilize Nomic's nBTC to issue a stablecoin, and release a new version of the Anchor Protocol ( called Anchor Sail ). The new Anchor Sail plays an important role in Mint Cash and is a key link in the growth and anchoring of the stablecoin.

4. Development Team Background

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

5. The Launch Method of Mint Cash

Mint Cash will be launched in two ways:

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

Although the specific airdrop algorithm has not been announced, market rumors suggest that USTC will be valued at 1 dollar, which is also an important factor attracting market attention.

6. Potential Return Analysis

Currently, the circulation of USTC is 9 billion, but it is expected that only a portion will participate in the new project. Based on a valuation of 1 dollar, the new project is likely to be valued between 3 billion and 4.5 billion dollars. In contrast, the FDV of LUNA 2.0 is currently about 800 million dollars. Investors can apply a discount based on their own judgment to the 1 dollar valuation.

If calculated at the previous price of $0.014, the valuation is approximately $40 million to $60 million. Market reactions indicate that this valuation is considered low and has high return potential.

However, considering that Mint Cash currently only has a white paper, investors still need to weigh their confidence in the new team and expectations.

7. Market Reaction

The price increase of USTC has flowed from related concepts, taking about 3-4 days or even nearly a week. USTC has good liquidity and requires a large amount of capital to affect the price. The daily trading volume on a certain trading platform has surpassed 100 million and continues to grow.

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