TerraClassicUSD (USTC) is a cryptocurrency that operates on the Terra Classic blockchain. Originally, it was an algorithmic stablecoin designed to maintain a 1:1 peg with the US dollar, but it lost that value during the collapse of the Terra ecosystem in May 2022.
Main Features
Former Name: The token was originally called TerraUSD (UST).
Initial Function: It used a mint-and-burn mechanism linked to the LUNA token (now LUNC) to maintain its stability against the dollar, without being backed by real fiat reserves.
Current Status: USTC is no longer a stablecoin, and its price is now determined by pure supply and demand in the market, making it highly volatile. It trades at a fraction of its former value.
Blockchain: It resides on the Terra Classic blockchain, the original chain that continued to exist after the creation of a new chain (Terra 2.0).
Usage: Although it has lost its peg, USTC remains an actively traded cryptocurrency on various exchanges and is used in the Terra Classic ecosystem for gas fees and DeFi applications.
Revival Projects: The Terra Classic community continues to propose initiatives to try to restore its value, although the general consensus indicates that a return to $1 is unlikely in the near future. $USTC
