In a recent development, the Terra Classic (LUNC) community has received a cautionary warning, urging restraint in taking positions in USTC (formerly UST) and LUNC trading. This warning follows the blacklisting of an 800 million USTC wallet, a move that has raised questions about the algorithmic stablecoin’s liquidity and the broader efforts to revitalize both LUNC and USTC.
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Rexyz Warns The Terra Classic community Against taking Position in USTC and LUNC Trading
The warning, issued by community member Rexyz, questions the accuracy of the circulating supply data showcased on platforms like CoinMarketCap, suggesting that it may not accurately represent the true liquidity of the algorithmic stablecoin, USTC.
🚨WARNING🚨
Be extremely careful if you buy USTC/LUNC on the back of the 800m wallet blacklisting and the reduced circulation. This blacklisting has not actually taken place in the code yet, so this reduced supply is NOT correct.
Also there is still no legal document suggesting… pic.twitter.com/88Pq7txnB4— Rexyz (@RexYellerBelly) October 25, 2023
The Terra Classic community is actively considering measures to rejuvenate both LUNC and USTC. Part of these efforts involves periodic burning of assets. Recently, the community successfully passed a proposal to blacklist a wallet containing 800 million USTC tokens, a decision that followed months of discussions about the potential burning of these tokens.
While the move to blacklist the wallet was contentious, proponents argued that it was a necessary step to encourage the wallet’s owners to contribute to the larger effort to stabilize the token’s value. With the proposal’s passage, efforts to update the USTC data on platforms like CoinMarketCap were set in motion, and the code implementation for the blacklist began on October 20th.
However, Rexyz’s warning stands in stark contrast to the claims made by Vegas, one of the key advocates of the blacklisting move. While Vegas confirmed the code’s implementation for the blacklist and the update on CoinMarketCap, Rexyz alleged that, as of the time of his statement, the blacklist had not actually been implemented in the code.
To support his claims, Rexyz pointed out the absence of any legal documentation verifying the blacklist’s legality. These comments underscore the need for caution in the face of potential significant volatility. It’s important to note that, as of the time of this report, these claims remain unsubstantiated.
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Overnight, USTC experienced a 7.30% jump in price, reaching $0.0123. The trading volume also saw a significant increase, surging by 251% to $18.1 million, while the market capitalization reached $110.38 million.
The USTC token, formerly known as UST, lost its $1 peg last year, leading to a downturn in its value and impacting LUNA as well. Nevertheless, the Terra Classic community remains determined to change this narrative and has garnered support from major players in the industry, including Binance.
Efforts to restore USTC’s peg are not limited to burning alone. The core team managing the protocol recently passed Proposal 8813, allocating 1.6 million USTC to the Terra Classic grant program. Despite the consistency of these efforts, USTC remains down by 98% from its all-time high (ATH) of $1.05, highlighting the challenges and uncertainties surrounding the stablecoin’s journey to regain stability. The Terra Classic community continues to navigate these challenges in its pursuit of a more stable and prosperous future for USTC and LUNC.