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, nicely, iced tea.
Whether or not meant as satire or not, USDTea has joined the plethora of stablecoins within the huge crypto wilderness.
USDTea is supported by the “hottest” iced tea model in the USA, 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 entire crypto ecosystem into chaos with a whole bunch of billions of {dollars} in losses from only one token.
The operations of the stablecoin are slightly easy, since customers simply swap tokens and a processing payment for actual cans of iced tea (thelcn.com).
USDTea, The Iced-Tea Backed Stablecoin
In these troubling instances, the one factor we are able to rely on is {that a} can of AriZona Iced Tea will price 99 cents, the identical value it has had for the previous three a long time.
Mossy, a trio of tech artists, believes that an (unofficially) beverage-backed stablecoin may be the messiah of types within the ailing crypto economic 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 value has been fixed for 30 years: AriZona Iced Tea.
Whereas different stablecoins purpose to peg to greenback portions by way of “questionable algorithms or opaque funding strategies,” Mossy ensures their liquidity with “candy and scrumptious liquid.”
A stablecoin means that it must be “secure” because it follows the worth of one other asset, much like the gold normal, which has as soon as specified that every US greenback is backed by the valuable metallic.
TerraUSD was algorithm-based, which means that there have been no bodily reserves, which resulted in $400 billion in losses for traders, prompting many to query the “stability” of stablecoins as an entire.
Crypto whole market cap at $1.24 trillion on the Tuesday chart | Supply: TradingView.com
The Weirdness Of This World
In consequence, the group determined to ascertain a stablecoin backed by “America’s most secure asset” — cans of AriZona Iced Tea, whose proprietor, Don Vultaggio, has saved the worth of a single can secure for 30 years.
The ERC20 token USDTea operates on the Ethereum blockchain. So as to guarantee 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 slightly simple, since customers simply ship tokens and a processing payment in alternate 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