A Marketing Campaign That Caused the Price Rollercoaster of USTC — Mint Cash

What is Mint Cash？

Mint Cash aims to recreate the vision of TerraUSD: “A stablecoin system that doesn't rely on traditional financial systems and centralized control.”

Built on the Terra Core stablecoin system, Mint Cash stands out with the feature that its Mint tokens are backed by Bitcoin. Mint Cash introduces automated liquidity management and a Virtual Automated Market Maker System (VAMMS) mechanism to mimic the policies of central banks participating in forex trading and providing liquidity. Any user can deposit Bitcoin to receive Mint tokens and vice versa, redeem Mint tokens to exchange them back for the underlying Bitcoin.

Additionally, Mint Cash's core developers come from the former Anchor team and Aleph Research.

Sequence of Events

On November 24th, former Terra research architect Daniel Hong tweeted, announcing the collaboration with Junho to recreate the glory of LUNA and Anchor.

A day later, Daniel Hong gradually revealed the details of how Mint Cash leverages the LUNA/USTC cold start:

• Hold $UST or $LUNA before the crash on May 10, 2022.

• Lock and burn a specified amount of $USTC through Mint Cash's airdrop.



In the thread, it is mentioned that participants will be airdropped at a rate of 1 $USTC = $1 (USD), at a time when the price of $USTC is less than $0.02.

While it's unclear if Mint Cash has price guarantees for the subscribed tokens, the significant price difference, coupled with the identity of the Mint Cash founding team, has led to a surge in demand for $USTC in the secondary market.

As the news gradually spread, the price of USTC experienced substantial fluctuations, reaching a peak with an increase of over 5 times.



After receiving inquiries, Daniel Hong provided a more detailed explanation regarding considering 1 $USTC as $1 USD, stating that it is an initial valuation quote. Following this clarification, the price of USTC experienced an instant decline.



Undoubtedly, the USTC price is likely to experience significant fluctuations depending on any changes in Mint Cash's final airdrop rules. Currently, there are approximately 9.8 billion $USTC circulating in the market. Even if Mint Cash is willing to consider USTC as 1 USD, it might face challenges in obtaining sufficient funds to maintain the token price. WikiBit reminds you to exercise caution when participating in situations where specific rules are unclear.