Terra Classic USD (USTC) Stablecoin Soars 40% on Re-Peg Proposal

Terra Classic USD (USTC) Stablecoin Soars 40% on Re-Peg Proposal


The field of algorithmic stablecoins has taken a massive hit after the infamous collapse of the entire Terra ecosystem (including UST).

Following the crash, the community got split into two – those who support the new version of Terra, which retained the name, and those who support the old version of it – Terra Classic.

  • Within the past 24 hours, the stablecoin called Terra Classic USD, or USTC, soared by 40%, as uncharacteristic as this may be for a cryptocurrency designed to stay flat.
  • This comes as Tobias Andersen filed a proposal to re-peg the stablecoin and hence tackle some of the existing challenges in front of the protocol.
  • titled Terra Classic USTC re-peg proposal, the document proposes to reduce the debt that was accumulated back in May during the “black swan” (as he calls it) event.
  • To do so, the blockchain engineer proposes a process to recapitalize the stablecoin by using measures similar to that of quantitative easing (QE) without giving too many specifics on the matter.
  • Besides that, Andersen believes that USTC needs to be re-pegged to its original value of $1.

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.


Source link

Leave a Comment