Terra ecosystem tokens USTC and LUNC skyrocketed 350% and 60% in two days amid a chain of favorable news for the Terra Luna Classic community. The crypto community remained surprised and speculated whether the algorithmic stablecoin USTC will repeg to $1 and LUNC price will also revive amid recent efforts by the Terra community.
What Really Happened?
In October, Mint Cash, a permissionless and price-stable payments and savings currency system based on Bitcoin, announced itself as a successor to TerraUSD (UST, now USTC). The Mint Cash team has the same vision as the Terra Luna Classic community, but the ways differ completely.
Mint Cash features include providing stable crypt conversion, capital use efficiency, flexibility, high yield with Anchor Protocol, and multi-currency support. The confusion happened as Mint Cash developer Shin Hyojin said “1 USTC = 1 US dollar.”
On November 22, Terra Money announced that Terraform Labs (TFL) injected $15 million of capital into the Terra ecosystem on Astroport and Ura. It makes liquidity on Terra for top crypto assets like Bitcoin and Ethereum. As a result, Cosmos-based tokens including USTC and LUNC started rising. Terra ecosystem tokens have similar price movements.
Moreover, Binance Futures launching the USD-M USTC Perpetual Contract with up to 50x leverage sparked further rally. The announcement further raised community sentiment, while also speculating whether it was already known to some investors as the Terra ecosystem tokens witnessed sudden rallies.
CoinGape Media also reported that Binance will remove USTC against BUSD as part of ending support for BUSD by February 2024. This also contributed to a reshuffling of trades. The delisting announcement coincided with Binance’s comprehensive settlement with the U.S. Department of Justice (DOJ), a crucial chapter that also sees CZ stepping down from his role as CEO.
USTC and LUNC Dump
Terra Classic ecosystem tokens USTC and LUNC were dumped after Terra Money stated that Terraform Labs is not involved in Mint Cash in any way. Mint Cash also denied any link to Trader QT, a partner of Luna Classic Labs.
LUNC price fell 25% after making a 60% gain. The price is currently trading at $0.000094. The 24-hour low and high are $0.0000921 and $0.0001256, respectively.
USTC price dropped 45% and currently trades at $0.038, paring earlier gains of 350%. The trading volume has also decreased after the TFL announcement.
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