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Terra Classic USD (USTC) rose Rapidly by 40% on October 10, 200 when a blockchain engineer filed a proposal to re-peg the stablecoin.
The above chart indicates one week of price performance of the stablecoin USTC. In which the price of the stablecoin gained the investors interest and came in the green-zone. It nearly noted an increase of 40%.
On October 10, 2022 it was trading at a price of $0.03131 with the trading volume of $18.75 Million and now is currently trading at a price of $0.05948 with an increase of 46.83% in the recent 24 hours. And the current trading volume of Terra Classic USD is $387.42 Million, which is a huge increment in its trading volume.
Terra Classic USTC Re-peg Proposal
Tobias Andersen, a blockchain engineer filed a proposal on October 9, 2022 to re-peg the stablecoin. His proposal was intended to face some of the existing challenges in front of the protocol. In his Medium post, entitled Terra Classic USTC re-peg proposal, the document proposes to cut down the debt that was accumulated back in May during the “black swan” (as he marks it) event.
In the Medium post, he proposes a process to recapitalize the stablecoin by using some measures. Apart from that, he thinks that USTC needs to be re-pegged to its original value of $1.
He started his post with a ‘Executive Summary’ that stated “In May 2022 the Proof-of-Stake blockchain network known today as Terra Classic witnessed a “black swan” event that caused the collapse of Terra & Luna through a vicious death spiral which resulted in the printing of trillions of governance tokens, a massive “debt mountain” in the form of uncollateralized stablecoins and an exodus of significant intellectual property to competing blockchain networks.”
He explained his fact over the long-term capital investment and added in the USTC re-peg proposal, that “In order to attract the long-term capital investment needed to “re-peg” USTC we need to establish an “anti-fragile” market maker system that will incentivize new businesses to leverage the existing platform infrastructure in a way that is inducive of “positive network growth” while being “prohibitive of economic instability” as it is the assumption that if we can continue growing our network effect while stabilizing the current price volatility via encouraging increased staking and on-chain utility then eventually the market will reward us with increased valuation and enough liquidity to both re-peg USTC and further expend our platform.”
Moreover he mentioned that “To accomplish this feat, we will need to implement a host of new features that can enable us to establish additional “capital controls” which will allow entrepreneurs to create new features on one of the few truly “community-driven” networks in the crypto space, without assuming any risk to their investors capital.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
