TerraUSD price prediction: USTC is no longer a stablecoin but can it bounce back?

TerraUSD price prediction: USTC is no longer a stablecoin but can it bounce back?

Since its depeg from the US dollar, the TerraUSD cryptocurrency has gone through a “makeover”. Now known as TerraClassicUSD (USTC) and no longer a stablecoin, the coin is struggling to pick up, fluctuating between the $0.03 and $0.06 levels in July 2022.

Investor sentiment on the coin remains low, as concerns prevail about its trustworthiness following Terra Lana collapse, which caused some investors to lose over 90% of their funds. What do experts have to say, and what other factors shape TerraUSD price prediction?

What is TerraUSD?

TerraUSD (USTC; previously UST) is an open-source blockchain that hosts a number of decentralised applications (dApps) and developer tools within its ecosystem.

Originally, TerraUSD was an algorithmic stablecoin, a cryptocurrency that aims to maintain a 1:1 peg with the reserve currency they back – in UST’s case, the US dollar – through algorithms.

TerraUSD launched in September 2020 in partnership with Bittrex Global and was co-founded by Do Kwon, who is also the founder of Terraform Labs, a software development company behind the creation of the TerraLuna and TerraUSD sister coins.

Terra had a dual-token system that used the stablecoin and LUNC (previously LUNA), the protocol’s native staking token, to create and stabilise UST. LUNC was also used for governance and in mining. UST coins were minted by burning LUNC tokens and could also be swapped for LUNC.

According to its whitepaper, UST was meant to have the features of a “price stable cryptocurrency that combines the benefits of both fiat and bitcoin”. This meant that, ideally, UST had to be worth $1 at all times. However, on 9 May 2022 after several years of holding its value against the US dollar, the stablecoin collapsed, or de-pegged.

The token ended up losing over 80% of its value in less than a week and has never managed to recover from the massive drop. In addition, the cryptocurrency’s de-peg had a whirlpool effect on the cryptocurrency market, dragging down other cryptocurrencies including LUNC (previously LUNA) and BTC.

Following UST’s crash, Kwon proposed forking Terra to a new chain that would entirely cut out UST and focus on decentralised finance (DeFi) applications built on the Terra blockchain. The proposal saw the creation of a new layer-1 Terra blockchain without its algorithmic stablecoin. Meanwhile the old blockchain was renamed from Terra Luna (LUNA)  to Terra Classic (LUNC) and the new blockchain would be called Terra (LUNA).

On 25 May 2022, the proposal was passed. Two days later Terra started to operate from a new blockchain. The UST token was rebranded and is currently known as TerraClassicUSD (USTC).

USTC is a decentralised stablecoin pegged to the US dollar and built on the Terra Classic blockchain. Stablecoins aren’t supported on the new LUNA blockchain launched after the cryptocurrency fork. Instead, USTC is supported by LUNC, whose purpose is to maintain the stability of Terra’s stablecoins.

The total supply of USTC tokens exceeds 10bn, with over 9.828bn tokens currently in circulation, according to data provided by CoinMarketCap,as of 14 July. The USTC cryptocurrency currently has a market capitalisation of over $337.9m and is ranked 87th biggest token.

The aftermath of the TerraUSD collapse

UST lost its peg to the US dollar on 9 May 2022 when the token dipped by 84.5% falling from past $0.9 highs on 8 May to $0.154 by 13 May.

On 25 May, UST saw its first tiny gains when Terra announced that its community voted to pass the proposal for the forking of the blockchain, gaining around 67.5% of its value and surging to $0.09463 from $0.05648 lows four days earlier.

This also meant that after 25 May, UST no longer existed. USTC replaced UST but was no longer a stablecoin.

USTC/US chart, November 2020 – July 2022

However, a positive run did not last long as the token’s value continued to decline and by 8 June had reached its lowest point of just $0.009796 – a 99% decline since its 8 May $0.9964 high.

At the time, the blockchain was celebrating the launch of Terra 2.0  and its one-week anniversary, noting that many dApps had returned to the platform and were “up and running”. However, investors were not as bullish on the cryptocurrency as its price continued to fluctuate between the $0.06 and $0.09 levels.

According to Kwon, the platform has also been struggling with a lot of “misinformation”, which could have further contributed to USTC’s bearish price in June.

In mid-June, Kwon was accused of having cashed out $2.7bn in the months leading up to UST’s collapse, however, the entrepreneur denied all allegations.

“This should be obvious, but the claim that I cashed out $2.7bn from anything is categorically false,” Kwon said in a tweet.

“To reiterate, for the last two years the only thing I’ve earned is a nominal cash salary from TFL [Terra Form Labs], and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger pointing of ‘he has too much’.

“Hope that’s clear – I didn’t say much because I don’t want to seem like playing victim, but I lost most of what I had in the crash too.”

By 29 June 2022, the token had managed to surge to $0.0811 following the announcement that SafePal Software and Hardware Wallet had started to support Terra 2.0 and LUNA tokens.

Some big news followed on 6 July 2022 when Soil Protocol, a non-fungible token (NFT) infrastructure built for Terra 2.0, announced its launch. The platform allows people to develop NFT projects without having to write smart contracts. Since reaching $0.0811, USTC fell back to $0.03443 on 14 July.

Analyst outlook on USTC

“The collapse of UST gave a wake-up call for many,” said Anndy Lian, chief digital advisor at Mongolian Productivity Organisation and the author of Blockchain Revolution 2030, told Capital.com.
“It has also helped many understand more about stablecoins and how they are designed to hold a steady value pegged to a fiat currency, and that not all stablecoins are stable by default.”

According to Lian, cryptocurrencies are in dire need of a set of rules that will help and lobby crypto rules on a global level.

“It is important to impose strong regulations before it poses more severe financial risks as the market grows bigger over time. I must emphasise again, that the regulations must be made independently and catered to the fast-moving crypto environment, not copy existing rules to crypto.”

Raullen Chai, CEO and co-founder of IoTEX, noted that very few people are bullish on LUNA and USTC.

“Since people are already losing faith in LUNA and UST (and even all algorithmic stablecoins), it is unlikely that they will survive this bear market,” he told Capital.com.

Chai said he remains optimistic about other areas of cryptocurrency markets in the long run, including “store-of-value coins such as Bitcoin and Ethereum”, and “MachineFi that is about connecting the real world into the crypto world or Web3 to address real problems and provide users with real value”.

Lian added that because USTC is still listed on several tier-one exchanges such as Binance, FTX and Kucoin, it means there are people who are still hopeful that the cryptocurrency can make a comeback. However, he urged investors to pay more attention towards projects that are building on the Terra blockchain.

Chai warned that “all cryptocurrencies are vulnerable to crashes as are all stocks.”He added:

“In crypto, as in any other business, the strongest projects with real development and solving real-world problems will always have a better chance of surviving an extreme bear market. In crypto, bear markets have a positive side which is the flushing or purging of bad projects.”

TerraUSD price prediction: 2022-2030

Despite recent bearish price action, algorithm-based forecasting service WalletInvestor gave a bullish TerraUSD price prediction.

As of 14 July, the site called USTC is “an awesome investment”. According to the website’s future USTC price prediction, the token could reach $0.376 in 2023 and jump to $1.671 by 2027.

DigitalCoinPrice supported the positive TerraUSD price prediction, but projected a much slower pace of growth in the following years. Its TerraUSD price prediction for 2022 showed that the cryptocurrency could average at $0.0515 by the end of the year.

The website’s TerraUSD price prediction for 2025 suggested that the coin could average at $0.0729, surpassing the $0.10 barrier by 2028, averaging at $0.12 in that year. Its long-term TerraUSD price prediction for 2030 indicated that the cryptocurrency could average at $0.19 during the year.

Note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence. And never invest or trade money you cannot afford to lose.

 

 

Original Source: https://capital.com/terrausd-token-terraclassicusd-price-prediction

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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No ban on crypto advertisements; to soon come out with Bill, says Nirmala Sitharaman

No ban on crypto advertisements; to soon come out with Bill, says Nirmala Sitharaman

The government will soon introduce a new crypto bill, said Finance Minister Nirmala Sitharaman during Question Hour in Rajya Sabha today.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 seeks to ban all but a few private cryptocurrencies to promote underlying technologies while allowing an official digital currency by RBI.

After approval of the Cabinet, the government will introduce a new crypto bill in Parliament after Cabinet approval, FM Nirmala Sitharaman said.

Speaking in Lok Sabha, the finance minister said, “We are close to bringing a bill in parliament.. It will be introduced in the house once cabinet clears the bill.”

The government will not ban advertisements on cryptocurrency. Stating this in Lok Sabha, Finance Minister Nirmala Sitharaman said, “This is a risky area and not in a complete regulatory framework. No decision was taken on banning its advisements. Steps are taken to create awareness through RBI & SEBI.

Anndy Lian, Chairman, BigONE Exchange said, “There is a need to have a good understanding on how cryptocurrencies in India will be like. Firstly, there is no blanket ban. The crypto bill in circulation is an old bill. The regulators are reworking on the new bill. Secondly, there is no proposal to recognise Bitcoin as a currency. With the given scenarios, it is only right for the government not to ban advertisements on cryptocurrency related promotions. But do bear in mind, there are advertising laws in India such as the Press Council of India Act, 1978 and there is an Advertisement Standard Council of India to observe fairness. Therefore, this does not mean that crypto companies can go “Wild Wild West ” and put up misleading messages or advertisements promising sure-win schemes.”

Govt not to recognise bitcoin as currency

On November 29, Sitharaman in reply to a query on whether the government has any proposal to recognise Bitcoin as a currency in the country, the Finance Minister said ”No, sir”.

The Ministry said, “Cryptocurrencies are unregulated in India. RBI has vide its circular dated May 31st, 2021, advised its regulated entities to continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.”

The government will look at a regulatory mechanism like it is done for currency by Reserve Bank of India (RBI), according to news reports. Cryptocurrency could be treated as a commodity and will be taxed. There will be a regulatory mechanism on cryptocurrency like there is RBI for currencies.

The Government has received a proposal from RBI in October, 2021 for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form.

 

 

Original Source: https://www.freepressjournal.in/business/no-ban-on-crypto-advertisements-to-soon-come-out-with-bill-says-nirmala-sitharaman

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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All Cake, No-Bake: BabyCake’s Rise in the World of Digital Currencies

All Cake, No-Bake: BabyCake’s Rise in the World of Digital Currencies

BabyCake proudly stands as the world’s first CAKE reflection token. Users receive CAKE in their crypto wallets just for holding the $BABYCAKE native token. 

Best of all – there’s no stress about manually claiming CAKE. Tokens are automatically sent to wallets thanks to BabyCake’s Protocol. BabyCake’s unique classic redistribution scheme is based on contract percentage, current token balance, and the number of holders. 

Our Mission: To Revolutionize DeFi

Just head on over to PancakeSwap to buy $BABYCAKE (users need at least 200,000 tokens to receive distributed CAKE) and check out the BabyCake dashboard to see your daily rewards.

BabyCake features a static reward system representing the next evolution of Binance Smart Chain (BSC) yield-generating contracts. 15% of each transaction splits as follows – 7% CAKE goes right back to holders. 5% is allocated for marketing efforts. The final 3% becomes liquidity for PancakeSwap.

Whales are warned, BabyCake has added an extra 1% fee to all sales to reduce swing trading and monopolization.

Under The Hood

The BabyCake team has taken several steps to ensure optimal security. There’s a 12-month lock on initial liquidity, so holders can rest assured they can trade. DXLock, a cross-chain decentralized token and liquidity provider locker for Ethereum and BSC, is here to help as a middleman.

BabyCake’s contract is also audited and certified by ​​CertiK, a leading blockchain security firm. Founded by Yale and Columbia University professors in 2018, CertiK has worked with hundreds of clients. A CertiK certification is considered the gold standard of contract security.

Still not convinced? Well, BabyCake has also invested in a contract audit from TechRate, a blockchain security consulting firm. They’ve audited 100’s of smart contracts since 2017, saving more than $300 million in investor funds. TechRate worked with BabyCake to ensure the contract had no vulnerabilities to severe issues or hacks.

Anndy Lian was added to the Baby Cake advisory team in August to provide further advice and expertise. He leads the Mongolian Productivity Organization and is the author of the best selling book Blockchain Revolution 2030.

Tasty Morsels For Baby Cake Holders

BabyCake has got a lot coming down the pipeline for its community.

First, BabyCakeSwap makes its grand debut in September.

The company is a Platinum Sponsor of the Dubai Crypto Expo. Monk will be speaking there as well as at the Global DeFi Investment Summit a few days earlier.

Down the line, BabyCake is looking to open up a BabyCake merch shop and an NFT platform. Not to mention, 5% of every transaction is allocated towards its marketing budget, which means BabyCake has plenty of firepowers to push its ambitious projects forward.

BabyCake has also announced its ‘Diamond Hands Sunday‘ and ‘Buy Back Monday’ initiatives. On Buyback Sundays, Rewards increase to 12% – that’s a 5% increase! (24 hours UTC). On Buyback Mondays, BabyCake tokens are purchased with the Rewards earned by the 1 billion tokens released from the Team Wallet. Consider it like a Whale wallet that will never sell and reinvests all its Rewards every week!

We are All About Our Community

Ready to learn more about the first CAKE reflection token?

It’s all about the community at BabyCake.

Follow BabyCake on Twitter to keep up with the latest news.

Chat with our team members on Telegram.

Discuss everything BabyCake inside our Reddit community.

Check in on the BabyCake website to see what’s new.

Get all the details on vision, strategy, and our Roadmap in our whitepaper.

Here’s to earning $CAKE and keeping things light and fluffy!

Source: https://btcmanager.com/all-cake-no-bake-babycake-digital-currencies/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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