After May 9, 2022, when Terra’s algorithmic stablecoin UST (now USTC) was depegged from the dollar, it has been six months since the decoupling. Although the previous stablecoin is currently trading for $0.02 a unit, some Terra Classic backers think USTC could be able to regain its peg.
Terra Supporters Want to Repeg the Once-Stable Coin USTC
Fans of another stalled cryptocurrency project seek to return Terra Money’s old stablecoin UST (now USTC) to the $1 price range amid the frenzy surrounding the FTX collapse. Social media has seen a lot of conversation on the topic even if the token terraclassicusd (USTC) is far below the face value of the dollar. Despite this, Terra Classic backers continue to advocate for the now-defunct Terra token. One person tweeted, “Let’s repeg USTC,” and others posted images of USTC increasing to $1 with with rocketship emojis.
Along with a few other Terra Classic blockchain enthusiasts, Will Chen, an R&D developer at Terran One and former Terra Money developer, discussed the likelihood of USTC repegging. “The USTC repeg is the first time something like this at this scale has ever been attempted by a community,” Chen said. “Like LUNC, once the communal effort to repeg USTC makes progress/momentum that defy the odds and surprises all the non-believers, everybody will want to join in.”
Chen’s tweet has more than 1,154 likes on Twitter and it’s been shared around 400 times since the tweet was published. The Terran One dev also wished the community the “best of luck.” Of course, getting USTC back to the $1 range would be a miracle and it is an accomplishment that has never been achieved thus far in the history of crypto. Chen’s optimistic tweet, however, was challenged, as many people believe the feat is impossible. One person wrote:
It requires [$9.5 billion] that nobody has, or burning [more than] 90% of USTC ( = defaulting on it). Which is fine … but it will require a lot more than slogans.
Terra Classic blockchain fans disagreed with this assessment and said that it was possible the debt could be cleared. “No, it doesn’t require [$9.5 billion],” an individual replied. “Market did price the debt, less than 200 million USD. [Luna Foundation Guard] assets are still backing the debt, via buy-back-burn on USTC. Little inflation on [LUNC] and tax % could go to clear the debt. [Binance’s CEO CZ] could burn the debt with the spot trading fees,” the person added.
As of the time of writing, USTC is trading at $0.020 per unit and has lost 3.5% of its value versus the US dollar over the past day. USTC’s worth was significantly greater last month despite the coin losing 50.9% of its value in the last 30 days. At $0.00015820 per LUNC, Terra Classic’s LUNC is even cheaper than a
USTC would need to increase in value by 4,900% in order to return to the $1 range. There are currently 9,805,804,874 USTC in existence, and in the last day, $15.33 million has been traded for the token. While returning USTC to $1 would be quite the accomplishment, the token is having difficulty staying above two American pennies.