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Out of the ruins of the TerraUSD (UST) collapse rises a brand new stablecoin — USDTea, the primary of its type — that’s backed by a can of, properly, iced tea.
Whether supposed as satire or not, USDTea has joined the plethora of stablecoins within the huge crypto wilderness.
USDTea is supported by the “most popular” iced tea model within the United States, AriZona Iced Tea, which has persistently supplied its product for $0.99 since 1996.
Stablecoins are presently taking a extreme battering, and the upheaval that occurred this week has thrown your complete crypto ecosystem into chaos with a whole bunch of billions of {dollars} in losses from only one token.
The operations of the stablecoin are relatively easy, since customers simply swap tokens and a processing price for actual cans of iced tea (thelcn.com).
USDTea, The Iced-Tea Backed Stablecoin
In these troubling occasions, the one factor we are able to depend on is {that a} can of AriZona Iced Tea will price 99 cents, the identical worth it has had for the previous three many years.
Mossy, a trio of tech artists, believes that an (unofficially) beverage-backed stablecoin will be the messiah of kinds within the ailing crypto financial system.
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The techy collective says:
We intend to stabilize the delicate cryptocurrency ecosystem by creating a brand new token backed by a tough asset whose worth has been fixed for 30 years: AriZona Iced Tea.
While different stablecoins goal to peg to greenback portions through “questionable algorithms or opaque investment techniques,” Mossy ensures their liquidity with “sweet and delicious liquid.”
A stablecoin means that it ought to be “stable” because it follows the worth of one other asset, much like the gold commonplace, which has as soon as specified that every US greenback is backed by the dear metallic.
TerraUSD was algorithm-based, which means that there have been no bodily reserves, which resulted in $400 billion in losses for buyers, prompting many to query the “stability” of stablecoins as a complete.
Crypto whole market cap at $1.24 trillion on the Tuesday chart | Source: TradingView.com
The Weirdness Of This World
As a end result, the group determined to determine a stablecoin backed by “America’s most stable asset” — cans of AriZona Iced Tea, whose proprietor, Don Vultaggio, has stored the value of a single can secure for 30 years.
The ERC20 token USDTea operates on the Ethereum blockchain. In order to make sure fiduciary obligation, the builders indicated that USDTea will start operations with an preliminary amount of 1,000 tokens after which steadily develop the reserves.
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The operations of the stablecoin are relatively easy, since customers simply ship tokens and a processing price in change for actual cans of iced tea.
Mossy’s Brian Moore disclosed in an interview with TechCrunch that the group’s token bought out round an hour and a half after launch, which he attributed to the “weirdness of this world.”
Iced tea, anybody?
Featured picture from Mossy, chart from TradingView.com
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