Terra Classic USD (USTC) Stablecoin Soars 40% on Re-Peg Proposal

The field of algorithmic stablecoins has taken a huge hit after the infamous collapse of the entire Terra ecosystem (including UST).

After the crash, the community split into two: those who support the new version of Terra, which kept the name, and those who support the old version, Terra Classic.

  • In the past 24 hours, the stablecoin called Terra Classic USD, or USTC, soared 40%, uncharacteristically for a cryptocurrency designed to stay flat.
  • This comes as Tobias Andersen presented a proposal to re-pin the stablecoin and thereby address some of the existing challenges facing the protocol.
  • titled Proposal to reactivate Terra Classic USTC, the document proposes to reduce the debt accumulated in May during the “black swan” event (as he calls it).
  • To do this, the blockchain engineer proposes a process to recapitalize the stablecoin using quantitative easing (QE)-like measures without giving too much detail on the matter.
  • In addition to this, Andersen believes that USTC should be reset to its original value of $1.

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