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

Recently, the price of USTC has experienced a significant rise, mainly influenced by the new stablecoin project Mint Cash in the Terra ecosystem. This article will briefly introduce the Mint Cash project and its background, as well as market expectations for the project.

Mint Cash Project Overview

Mint Cash is a stablecoin system backed by BTC, developed based on the original Terra Classic codebase. The project is an IBC chain originating from Terra Classic, and technically, it is expected to use Celestia as the data availability layer, utilize Nomic's nBTC for stablecoin issuance, and release a new version of the Anchor Protocol( called Anchor Sail).

Anchor Sail plays an important role in Mint Cash, being a key link in the growth and anchoring of stablecoins.

Project Team Background

The core developers of Mint Cash come from the former Anchor team as well as Aleph Research. In addition, some developers also plan to collaborate with CosmWasm and Berachain to jointly build Polaris EVM support based on the Cosmos SDK.

Mint Cash Launch Method

The Mint Cash plan will cold start through USTC, primarily targeting two types of users:

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

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 factors attracting market attention.

Market Reaction and Expectations

Since the self-relevant information was released, the price of USTC has shown a significant rise. Market reactions indicate that investors have high valuation expectations for the new project. Based on the current circulation of USTC at 9 billion, assuming that 1/3 to 1/2 of USTC enters the new project, with a valuation of 1 dollar, the valuation of the new project could be between 3 billion to 4.5 billion dollars.

It is worth noting that Mint Cash currently only has a white paper, and the project's prospects remain uncertain. Rational investors should thoroughly understand the team's background and study the white paper, while investors with a higher risk appetite may show greater interest in this.

Conclusion

The emergence of the Mint Cash project has brought new possibilities to the Terra ecosystem. However, investors should remain cautious when participating and comprehensively assess the project's potential and risks. The price trend of USTC will largely depend on the market's valuation expectations of the Mint Cash project.