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Mint Cash, a stablecoin project, will airdrop to USTC holders as USTC surges over 150% in a day.

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A stablecoin system collateralized by BTC, based on the original Terra Classic codebase.

Source: CM, Founder of BV DAO (Twitter: @cmdefi)

Due to the expected impact of the Terra ecosystem's new stablecoin project, Mint Cash, USTC has surged. BV DAO founder briefly introduced the Mint Cash project, the team behind it, and market expectations, unlocking the connection between the rumored image of Celestia+Nomic+Anchor for readers.

1. Information asymmetry behind the skyrocketing

It is not the community proposal that has been circulating outside, which has not yet entered the voting stage, but just a discussion on a forum. The core reason is more likely the new project Mint Cash @wemintcash and the new version of Anchor Protocol @SailOnAnchor that Anchor team members will participate in.

2. What is Mint Cash?

One stablecoin system collateralized with BTC, based on the original Terra Classic codebase.

3. What is the connection between Celestia, Nomic, and Anchor in the rumored image circulating online?

Mint Cash is an IBC chain originating from Terra Classic, so the DA layer should use Celestia. The issuance of stablecoins will use Nomic's nBTC. A new version of the Anchor Protocol named Anchor Sail will be released in Mint Cash, as announced by @SailOnAnchor.

The position of the new version of Anchor Sail in Mint Cash is very important, playing a key role in stablecoin growth and anchoring.

4. Who are the team members?

The core developers come from the former Anchor team and Aleph Research. In addition, the developers are currently planning to build Polaris EVM support based on the Cosmos SDK together with @CosmWasm and @Berachain.

5. Mint Cash will cold start in two ways through $USTC.

(i) Hold $UST or $LUNA before the crash on May 10, 2022.

(ii) Lock and destroy a specified amount of $USTC through the airdrop of Mint Cash.

The airdrop algorithm here does not have a publicly detailed calculation method, but the current statement is that USTC will calculate based on a valuation of 1 US dollar, which is also one of the fomo points in the market.

6. How about the returns?

This is probably the most concerning issue in the market. Currently, the circulation of $USTC is 9 billion, and many people use this number to estimate the valuation of new projects to nearly 10 billion. However, it is clear that not all of the circulating $USTC will enter new projects. The reasonable state may be 1/3 or 1/2, which means that the valuation of new projects is between 3 billion and 4.5 billion based on a calculation of 1 USD. The FDV of LUNA 2.0 is currently 800 million USD, and you can calculate your own price based on a discount from 1 USD.

If calculated based on the price before the market downturn at 0.014, the estimated value would be around 40M-60M. However, according to current market feedback, the market believes that this valuation is too low and the odds are high.

Of course, there is also the question of your expectations for the new team, after all, this is a project that currently only has one white paper. If you are a rational investor, you should delve deeper into the team and read the white paper. But if you are an old degen, you will probably love it.

7. Market Response.

The concept of Celestia+Nomic+Anchor has flowed into the rise of $USTC, which took 3-4 days or even a small week. In the past few days, the price of the currency did not fluctuate at all. In addition, the liquidity of USTC is very good, and it is not the kind of depth that can be pulled up by tens of thousands or millions. The trading volume on Binance alone exceeded 100 million last night and is still growing today.

Additionally, the goal of Mint Cash is not to bring $USTC back to 1, but to launch new projects. In simpler terms, your valuation expectations for the new projects determine the current price expectations for $USTC.