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

Affected by the expectations of the new stablecoin project Mint Cash airdrop, the price of USTC has risen significantly recently. The following is a brief introduction to the Mint Cash project and related information to analyze the reasons behind the market reaction.

1. The Real Reasons for Price Rise

The rise in USTC prices is not due to community proposals, but more likely because of the new project Mint Cash involving former Anchor team members and the upcoming launch of the new version of Anchor Protocol.

2. Introduction to Mint Cash Project

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

3. Project Technical Architecture

Mint Cash, as an IBC chain originating from Terra Classic, may utilize Celestia for its data availability layer, the stablecoin issuance will use Nomic's nBTC, and the new version of Anchor Protocol ( Anchor Sail ) will play a key role in Mint Cash.

4. Development Team Background

The core developers come from the former Anchor team and Aleph Research. Some developers also plan to collaborate with CosmWasm and Berachain to develop Polaris EVM support based on the Cosmos SDK.

5. Mint Cash Launch Mechanism

Mint Cash will be launched in cold start through two methods:

1. for users holding UST or LUNA before the crash on May 10, 2022
2. Participate in the airdrop by locking and burning a specified amount of USTC.

Although the specific airdrop algorithm has not been made public, market rumors suggest that USTC will be calculated at a valuation of 1 dollar, which has become one of the main reasons for the market's optimism.

6. Potential Return Analysis

Currently, the circulation of USTC is 9 billion. Assuming that 30%-50% of USTC participates in new projects, based on a valuation of 1 dollar, the valuation of new projects may range from 3 billion to 4.5 billion dollars. In comparison, the FDV of LUNA 2.0 is currently about 800 million dollars.

Based on the previous price of $0.014, the valuation is approximately $40 million to $60 million. Market reactions indicate that investors believe this valuation is low and has a high potential return.

However, rational investors should thoroughly understand the team's background and study the white paper, rather than making judgments solely based on market sentiment.

7. Market Reaction Analysis

It took about 3-4 days or even nearly a week for the relevant concepts to lead to the rise in USTC prices. USTC has good liquidity, and non-small amounts of funds can affect the price. A certain trading platform's daily transaction volume exceeds 100 million USD and continues to grow.

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