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

Recently, the price of USTC has seen a big pump, primarily influenced by the expectations of the airdrop of the new stablecoin project Mint Cash in the Terra ecosystem. Some industry insiders have provided a brief introduction to the Mint Cash project and its underlying team, and analyzed market expectations and other situations.

1. The Truth Behind the Big Pump

The core reason for the rise in USTC prices is not the community proposal rumored from the outside, which is still in the forum discussion phase. What may truly be driving the price increase is 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 collateralized by Bitcoin, developed based on the original Terra Classic codebase.

3. Project Architecture Analysis

Mint Cash is an IBC chain originating from Terra Classic, and its data availability layer may use Celestia. The stablecoin issuance will utilize Nomic's nBTC, and a new version of the Anchor Protocol will be launched within Mint Cash. The new version of the Anchor Protocol plays a crucial role in the entire system and is a key link in the growth and anchoring of stablecoins.

4. Development Team Background

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

5. Mint Cash Launch Mechanism

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

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

The current rumor is that USTC will be calculated for the airdrop at a valuation of 1 dollar, which is also one of the important reasons the market is optimistic.

6. Investment Return Analysis

The market's valuation expectations for new projects determine the price expectations for USTC. Based on the circulation of USTC being 1/3 to 1/2, the valuation of new projects could range between 3 billion to 4.5 billion USD. In comparison, the fully diluted valuation of LUNA 2.0 is currently around 800 million USD.

Investors need to make their own judgments based on expectations of the new team and information such as the project white paper. Rational investors should have a deep understanding of the team's background and project details, while risk-tolerant investors may place more emphasis on short-term opportunities.

7. Market Reaction

The outflow from related concepts to the rise in USTC price takes a relatively long time for the market to react, about 3-4 days or even close to a week. USTC has good liquidity, with the daily trading volume on a single trading platform exceeding 100 million USD, and it continues to grow.

It is important to note that Mint Cash's goal is not to pull the USTC price back to $1, but to launch a new project. The valuation expectations of investors for the new project will directly affect the price trend of USTC.