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New recovery plans must lift Terra USD to one dollar (but it’s a long way off)

TerraClassicUSD (USTC), the reissue of the collapsed stablecoin UST, is up more than 50% today and has reached a new monthly high of a whopping five cents.

By Finst News
• 3 min read
New recovery plans must lift Terra USD to one dollar (but it’s a long way off)

TerraClassicUSD (USTC), the reissue of the collapsed stablecoin UST, is up more than 50% today and has hit a new monthly high of a whopping five cents. The rise was sparked by a Medium article from Tobias Andersen, in which the blockchain developer outlines options for how the stablecoin’s dollar peg can be restored.

"I believe the only viable recovery option is the 'hard way,' roll up our sleeves and start a 3-to-5-year process aimed at encouraging companies to build on our network," Andersen said.

This will require a market-maker system that isn’t fragile and that encourages new businesses to use the existing platform infrastructure. This influx should help the network grow while also preventing economic instability.

The core of the plan is formed by a series of loosening measures and a reduction of Terra’s debt. How feasible the recovery plan is remains to be seen. The outlook for success is doubtful. The Terra crash didn’t just destroy $60 billion; it also dealt a heavy blow to investors’ confidence, as highlighted in the linked piece: investors' confidence."

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