The asset’s recent momentum is in direct contrast to the dominant downtrend witnessed within the broader crypto market.
TerraClassicUSD (USTC) is currently bucking the overall market, as it is currently registering a 15% gain in the past 24 hours, at a time when the broader crypto scene is witnessing a market-wide correction. USTC’s recent rally comes on the heels of comments made by Binance CEO Changpeng “CZ” Zhao about the asset.
Notable crypto analyst and influencer Miles Deutscher asserted that the UST project had the right vision amid the regulatory situation with Paxos and BUSD. Paxos announced yesterday that it would sever its relationship with Binance and discontinue issuance of new BUSD on February 21 due to a directive from the New York Department of Financial Services.
Recall that Terra USD (UST) was Terra stablecoin. After the crash of the Terra ecosystem, old UST was given the name TerraClassicUSD (USTC).
Speaking on the development, Deutscher noted that UST had the right vision, only that the mode of executing this vision was poor. “But the need for a robust decentralized stablecoin hasn’t gone away,” he added.
$UST had the right vision all along.
It was just executed poorly.
But the need for a robust decentralised stablecoin hasn’t gone away.
— Miles Deutscher (@milesdeutscher) February 13, 2023
In response, CZ agreed with Deutscher’s comments on the development. “sad but true,” he remarked in a tweet. Terra Classic proponents stormed the thread, notifying CZ that the best approach now is to rejuvenate USTC and execute it with the right approach, with some disclosing that the steps towards achieving this goal are already underway, referring to the recent re-peg proposal.
sad but true. 😂
— CZ 🔶 Binance (@cz_binance) February 13, 2023
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USTC, trading at $0.027 at the start of yesterday, surged by 27% to a high of $0.0343 this morning before facing slight opposition. The asset changes hands at $0.03206 as of press time, retaining a 15% gain in the past 24 hours. This makes it the highest gainer on CMC’s list of top 150 assets in the last 24 hours.
Recall that the community voted to pass the latest proposal to implement measures to re-peg USTC. The passing of this proposal also led to a massive surge in USTC’s price. Being a signal proposal, the re-peg measures are not expected to begin immediately. Instead, the appropriate parties will satisfy some prerequisite criteria in preparation for the re-peg. These criteria include getting developer consensus which is expected to occur before March.
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