- The Terra Luna Classic (LUNC) community is voting on a proposal to reclassify TerraClassicUSD (USTC) from a stablecoin to a meme coin, reflecting its current market behavior and aiming to bypass regulatory restrictions that threaten exchange listings.
- This rebranding effort seeks to rename USTC as Universal Standard Token Classic while retaining its ticker symbol, addressing the reality that USTC no longer functions as a stablecoin and faces delisting risks from major exchanges like Binance. citeturn0search2
The Terra Luna Classic (LUNC) community is making headlines again as members vote on a proposal to redefine TerraClassicUSD (USTC). The token, originally a stablecoin, may soon be classified as a meme coin or Universal Standard Token. This move follows significant losses since the collapse of Terra in 2022, and with USTC trading at just $0.01266, a return to its former $1 peg seems highly unlikely.
Why the Reclassification?
The proposal to change USTC’s classification comes with several motivations:
- Regulatory Relief: As a stablecoin, USTC is subject to strict regulations. By rebranding it as a meme coin, it may evade some compliance requirements.
- Exchange Listings: Binance, a major player in the crypto space, plans to delist USTC later this month. A new classification could encourage exchanges to retain the token.
- Market Reality: USTC no longer operates as a stablecoin, and its price movement reflects speculative trading rather than stability.
Additionally, the rebranding effort includes renaming TerraUSD to Universal Standard Token Classic, while keeping the ticker symbol USTC.
A Look at USTC’s Price Performance
USTC has been on a downward trend, plummeting by 45% from its peak this year. The token currently holds a market cap of $70 million and is trading far below its former glory. A major challenge lies in its ability to recover lost value. To return to $1, USTC would need an extraordinary surge of over 7,300%—an unlikely scenario given its current market position.
However, there are some signs of potential recovery. USTC recently formed a double-bottom pattern at $0.010, with a neckline at $0.02193. This technical setup is typically considered a bullish reversal signal. If this pattern plays out, USTC could rise to its key resistance at $0.03140, marking a 145% increase. On the downside, if it falls below the crucial $0.0085 support level, any hopes of recovery could be invalidated.
What’s Next for USTC?
The LUNC community’s vote on USTC’s reclassification is more than just a name change—it represents an effort to keep the token relevant. If approved, USTC may find new life as a meme coin, attracting speculative traders rather than investors seeking stability. However, the success of this shift will depend on market sentiment and the willingness of exchanges to maintain listings.
While some see this as a last-ditch effort to salvage USTC, others believe it could spark renewed interest in the token. Whether this move will breathe new life into USTC or merely delay its decline remains to be seen.