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Remember The Ill-Fated Terra Stable Coin? Its Shot Up Nearly 300% This Week — Here's Why

Published 01/12/2023, 14:44
Updated 01/12/2023, 16:11
© Reuters. Remember The Ill-Fated Terra Stable Coin? Its Shot Up Nearly 300% This Week — Here's Why

Benzinga - TerraClassicUSD (CRYPTO: USTC), the remnant of the collapsed Terra blockchain, has surged 300% in the past week.

What Happened: The rise in investor interest follows the news that cryptocurrency exchange Binance has started offering perpetual contracts for USTC, and as details of a proposed Bitcoin-focused revival plan with an airdrop emerge.

However, it is worth noting that despite the surge, USTC’s price of $0.052 is quite low from its initial $1 peg.

The rise in USTC's price also comes as a court in Montenegro said last week that it had approved the extradition of cryptocurrency entrepreneur Do Kwon.

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

Why It Matters: Initially designed by Terraform Labs and led by former CEO Kwon, the Terra ecosystem hosted USTC — an algorithmic stablecoin — and LUNC, previously known as LUNA, which supported USTC’s peg to the U.S. dollar.

However, this model collapsed under its weight in May last year, wiping out billions in market value from the Terra ecosystem.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) brought forth charges against Terraform Labs and Kwon, accusing them of executing a “multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin.”

Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?

© 2023 Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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