Will USTC Recover? Terra Classic Community Discontinues Minting, Votes To Burn
Portfolio Pulse from Khyathi Dalal
TerraUSD Classic (USTC) will cease minting following a community vote. The decision, which received 59% approval, also ends all conversion of xUST to mint USTC. Over the past year, USTC's value has decreased by 64.1%, with its current price 98.9% lower than its all-time high. The move is aimed at restoring its U.S. dollar peg through the burning of tokens, which will reduce market supply. Terra Classic, the original network created by Terraform Labs, backs UST with assets like LUNA and Bitcoin.
September 25, 2023 | 3:10 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Bitcoin's price has increased by 38.1% over the past year, outperforming USTC.
Bitcoin's price performance over the past year has been positive, in contrast to USTC's decline. This suggests that Bitcoin may be a more stable investment in the current market environment.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Ethereum's price has increased by 20.5% over the past year, outperforming USTC.
Ethereum's price performance over the past year has been positive, in contrast to USTC's decline. This suggests that Ethereum may be a more stable investment in the current market environment.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
LUNA is one of the assets backing USTC. The impact of USTC's decision to cease minting and burn tokens on LUNA's price is uncertain.
LUNA is one of the assets backing USTC. Therefore, any changes in USTC's strategy could potentially impact LUNA's price. However, the exact impact is uncertain and will depend on the market's reaction.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
TerraUSD Classic's decision to cease minting and burn tokens could potentially stabilize its price by reducing market supply.
The decision to cease minting and burn tokens is aimed at reducing the market supply of USTC, which could potentially stabilize its price. However, the impact on the price will depend on the market's reaction to this move.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100