Terra ecosystem tokens USTC and LUNC skyrocketed 350% and 60% in two days amid a series of favorable information for the Terra Luna Classic neighborhood. The crypto neighborhood remained stunned and speculated whether or not the algorithmic stablecoin USTC will repeg to $1 and LUNC worth may even revive amid latest efforts by the Terra neighborhood.
What Really Happened?
In October, Mint Cash, a permissionless and price-stable funds and financial savings forex system primarily based on Bitcoin, introduced itself as a successor to TerraUSD (UST, now USTC). The Mint Cash group has the identical imaginative and prescient because the Terra Luna Classic neighborhood, however the methods differ utterly.
Mint Cash options embody offering steady crypt conversion, capital use effectivity, flexibility, excessive yield with Anchor Protocol, and multi-currency help. The confusion occurred as Mint Cash developer Shin Hyojin mentioned “1 USTC = 1 US dollar.”
On November 22, Terra Money introduced that Terraform Labs (TFL) injected $15 million of capital into the Terra ecosystem on Astroport and Ura. It makes liquidity on Terra for prime crypto belongings like Bitcoin and Ethereum. As a consequence, Cosmos-based tokens together with USTC and LUNC began rising. Terra ecosystem tokens have comparable worth actions.
Moreover, Binance Futures launching the USD-M USTC Perpetual Contract with as much as 50x leverage sparked additional rally. The announcement additional raised neighborhood sentiment, whereas additionally speculating whether or not it was already recognized to some traders because the Terra ecosystem tokens witnessed sudden rallies.
CoinGape Media additionally reported that Binance will remove USTC towards BUSD as a part of ending help for BUSD by February 2024. This additionally contributed to a reshuffling of trades. The delisting announcement coincided with Binance’s complete settlement with the U.S. Department of Justice (DOJ), an important chapter that additionally sees CZ stepping down from his position as CEO.
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USTC and LUNC Dump
Terra Classic ecosystem tokens USTC and LUNC had been dumped after Terra Money stated that Terraform Labs isn’t concerned in Mint Cash in any method. Mint Cash additionally denied any hyperlink to Trader QT, a accomplice of Luna Classic Labs.
LUNC worth fell 25% after making a 60% achieve. The worth is presently buying and selling at $0.000094. The 24-hour low and excessive are $0.0000921 and $0.0001256, respectively.
USTC worth dropped 45% and presently trades at $0.038, paring earlier positive aspects of 350%. The buying and selling quantity has additionally decreased after the TFL announcement.
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