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Can USTC still be pegged to the US dollar?

There is a possibility that USTC (the forked coin of the original UST) can be re-pegged to the US dollar, but currently, the likelihood is very low for the following main reasons:

1. Collapse of Trust Foundation: The collapse of UST and LUNA in 2022 led to the evaporation of a large amount of user assets, and the market has almost completely lost trust in its issuer, Terraform Labs, and the algorithmic stablecoin mechanism. Rebuilding trust is extremely difficult.

2. Unresolved Mechanism Defects: The original "algorithmic anchoring" mechanism of UST relied on the arbitrage cycle between LUNA and UST to maintain price stability. This model is very prone to trigger a "death spiral" under extreme market conditions, and USTC has not effectively innovated the core mechanism, still posing fundamental risks.

3. Extremely Low Market Recognition: Currently, the price of USTC has long been far below 1 US dollar, and the trading volume is relatively small, lacking support from mainstream exchanges and institutions, making it difficult to form the liquidity and market consensus required for stable pegging.

In summary, based on the current market situation and the essence of the mechanism, while there is a possibility, the difficulty of USTC being re-pegged to the US dollar is quite high. However, the cryptocurrency space is a strange circle. There may also be Wall Street forces injecting assets into USTC, endowing it with certain functions, and rebuilding trust, so it is possible that one day it could be re-pegged to the US dollar!!

When Luna collapsed, was there Wall Street influence shorting?

There are signs that Wall Street may have been shorting when Luna collapsed.

According to reports, Citadel Securities has been accused of being the mastermind behind the Luna collapse. In early May 2022, Citadel Securities set up short positions on Luna and BTC, and during the time when Curve's DeFi deposit account was preparing to change from 3pool to 4pool, which led to a decrease in liquidity, they invested 350 million UST into Curve, causing the price of UST to decouple and triggering Luna into a death spiral. Terraform Labs also filed a motion with the U.S. District Court for the Southern District of Florida, seeking permission to investigate Citadel Securities' trading books, accusing the U.S. market-making firm Citadel of being the mastermind behind the collapse of TerraUSD.

In addition, Wall Street investment bank Jane Street was also implicated. Igor Igamberdiev, head of research at cryptocurrency market maker Wintermute, revealed that the “Wallet A” that exchanged 85 million UST for USDC in the early hours of May 8, 2022, leading to a severe imbalance in the UST/3CRV Curve pool, likely belongs to Jane Street.

What is the relationship between Luna, Lunc, and USTC?

Luna Coin, LUNC Coin, and USTC are primarily related through their origins, functions, and historical backgrounds.

1. Luna Coin: This is the new native cryptocurrency on the Terra 2.0 blockchain. Terra 2.0 is the new chain that emerged after the hard fork of the original Terra blockchain, aimed at rebuilding the ecosystem and attracting developers and users, with its price closely tied to ecosystem development.

2. LUNC Coin: Originally named LUNA, this was the cryptocurrency on the original Terra 1.0 blockchain. After the collapse of the Terra ecosystem in May 2022, the original Terra network was renamed Terra Classic, and the token was subsequently renamed Luna Classic (LUNC). LUNC remains a backup token for USTC, and an increase in LUNC's value may eventually lead to USTC being re-pegged.

3. USTC: This is an algorithmic stablecoin, formerly known as UST, which was renamed to Terra Classic UST (USTC) after the collapse of the Terra ecosystem. It is linked to the LUNC cryptocurrency based on certain predefined conditions.

In simple terms, LUNC and USTC are legacy tokens following the collapse of the original Terra ecosystem, while Luna is the native token of the new Terra 2.0 ecosystem, with LUNC and USTC still maintaining a certain degree of connection, while Luna has embarked on a new development path.

In the cryptocurrency world, "good news" often comes with pitfalls. Many times, so-called good news may be deliberately released by project teams, such as "soon to be listed on major exchanges" or "backed by big players," actually aimed at pumping the price for selling, and once retail investors rush in, they start dumping and trap a large number of people.

Moreover, the information in the cryptocurrency space is very mixed and hard to distinguish between true and false. Some good news is even fabricated, such as forged partnership agreements or false policy interpretations. Ordinary investors find it difficult to discern the truth at the first moment and can easily be swayed by emotions, resulting in becoming targets for others to harvest. So when you see good news, don't rush in; think carefully about the underlying motives, and calm analysis is the key~ Have you encountered such a "good news trap" recently?

The supply mechanism of Dogecoin does have its uniqueness, with unlimited supply and serious inflation rate, ultimately it will become a fool's game to take over

1. Unlimited supply: Dogecoin has no fixed total supply limit, initially set to add 5 billion coins each year. Based on early circulation, the inflation rate was quite high (for example, around 5% in the early days). When Huoge first encountered Dogecoin, there were about 10 billion coins, which surged to 15 billion over a few years.

2. Impact of inflation: Theoretically, unlimited supply may lead to relatively low long-term deflationary pressure, but it may also weaken its attribute as a 'store of value', being more regarded as a cryptocurrency with strong social characteristics, with its price heavily influenced by market sentiment, community activities, and other factors.

For investors, these characteristics need to be considered in conjunction with their own risk tolerance and investment logic.

The tumultuous story of Ethereum Classic (ETC)!!

The story of ETC dates back to the 'DAO incident' in 2016.

In April 2016, the project The DAO was established on Ethereum, raising about 14% of the total circulating supply of ETH in May. In June, a hacker exploited a contract vulnerability to attack The DAO, stealing 3.5 million ETH, worth approximately 50 million USD.

In response to this attack, the Ethereum community proposed two solutions: one was to modify the code through a hard fork to roll back transactions and recover losses; the other was to maintain the immutability of the blockchain without code modifications. Ultimately, those in favor of the hard fork prevailed, and in July 2016, Ethereum completed the hard fork, resulting in the creation of a new Ethereum (ETH) and Ethereum Classic (ETC). ETC is maintained by a team led by Igor Artamonov, adhering to the principle of 'code is law' and preserving the original transaction history.

In the early stages of its launch, ETC performed poorly, hitting an all-time low of $0.45 in July 2016. In March 2017, ETC established a deflationary model with a fixed total supply of 210 million coins, and Grayscale also set up an ETC trust fund. In November 2017, the first global summit for ETC was held in Hong Kong, which propelled its price upward. By January 2018, the price of ETC surged to $45, but then fell sharply.

In December 2018, the ETCDEV development team ceased operations due to funding issues. In January 2019, the ETC network suffered a 51% double-spend attack, resulting in the loss of 54,200 ETC. Although the attacker later returned the funds, ETC's reputation took a significant hit.

In 2021, ETC emerged from the bear market, with its price soaring to $167, setting a new all-time high, but it subsequently continued to decline. As of December 18, 2024, the price of ETC is approximately $31.67, with a market cap of about 34.61 billion RMB.

Does the U.S. Stablecoin Bill Benefit the Stablecoin USTC?

On July 18, 2025, local time, U.S. President Trump signed the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act," which primarily targets compliant, dollar-pegged payment stablecoins, imposing strict requirements on issuers and reserve assets. The legislation stipulates that only three types of entities are allowed to issue payment stablecoins: subsidiaries of banks or credit unions, non-bank financial institutions approved by federal regulators, and others; and the issuer must hold at least one dollar of compliant reserves for every one dollar of stablecoin issued, with compliant reserves limited to cash in dollars, insured bank deposits, short-term government bonds, and so on.

USTC, being an algorithmic stablecoin, saw its price surge in response to this favorable news after the announcement of U.S. stablecoin regulations. As of July 18, 2025, its 24-hour increase was 19%, and its market performance and inherent attributes are expected to benefit from the support and regulation provided by U.S. stablecoin legislation, leading to further increases in its market capitalization.

On July 17, 2025, local time, the U.S. House of Representatives passed the "Guiding and Establishing the American Stablecoin National Innovation Act" (the "GENIUS Act") with a vote of 308 in favor and 122 against. Subsequently, President Trump officially signed the bill on July 18, marking the first formal establishment of a regulatory framework for digital stablecoins in the United States.

Around the time the bill was passed, the price of Bitcoin was at a high. On July 14, the price of Bitcoin broke through $120,000, setting a new historical high. On July 17, Bitcoin rose from $119,795 the previous day to over $120,000.

Luna Coin has a huge impact in the crypto world, and its dramatic price fluctuations and the resulting series of chain reactions have had a profound effect on the crypto market and even the entire financial market.

Luna Coin is the native token of the Terra blockchain platform, which experienced a rapid rise in 2021, with its price skyrocketing from less than $1 at the beginning of the year to $119.5 in April 2022, and its market capitalization once exceeding $40 billion, ranking it among the top ten cryptocurrencies by market value, becoming the third largest stablecoin, and being referred to as the 'Moutai of the crypto world'.

However, in May 2022, Luna Coin experienced a cliff-like collapse, with its price nearly falling to zero, plummeting over 99%. This event not only led to hundreds of thousands of investors facing liquidation but also indirectly brought down the entire virtual currency market, triggering a 'crypto Lehman crisis', which included bank runs, hedge fund liquidations, and the bankruptcy of virtual currency brokerages. As a result, the total market capitalization of the global cryptocurrency market shrank by more than $600 billion, severely undermining investor confidence.

Additionally, the collapse of Luna Coin also exposed the risks of algorithmic stablecoins, leading to questions about the mechanism and safety of this new type of stablecoin. At the same time, this incident prompted countries to strengthen their regulation of the cryptocurrency market, with the U.S. Securities and Exchange Commission filing charges against Terraform Labs and Luna Coin's main developer, Do Kwon, who ultimately had to pay a $4.5 billion fine to the SEC, among other penalties. The Luna Coin incident has become an important case in the history of the cryptocurrency industry, profoundly influencing future industry regulation and compliance requirements.

The three major cryptocurrency bills in the United States are the "Guidance and Establishment of the American Stablecoin Innovation Act" (GENIUS Act), the "Digital Asset Market Clarity Act" (Clarity Act), and the "Anti-Central Bank Digital Currency Surveillance State Act" (Anti-CBDC Surveillance State Act). They have had various impacts on the cryptocurrency space:

1. Clarifying regulatory boundaries and reducing uncertainty:

The CLARITY Act clearly delineates the regulatory responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), classifying tokens that meet the definition of "mature blockchain," such as Bitcoin and Ethereum, as commodities regulated by the CFTC, while security tokens are regulated by the SEC. This reduces speculation about the regulatory nature of cryptocurrencies and provides clearer compliance pathways for crypto enterprises.

2. Stablecoins usher in opportunities for regulated development:

The GENIUS Act establishes the first federal regulatory framework for stablecoins in the U.S., requiring stablecoin issuers to obtain federal or state-level licenses and to hold reserves in a 1:1 ratio of U.S. dollars in cash, bank deposits, or short-term U.S. Treasury securities. This will make the issuance of stablecoins more transparent, reduce the risk of "printing money out of thin air," and enhance market trust in stablecoins. Leading stablecoins like USDC and USDT are expected to gain "official passports" and may experience explosive growth.

3. Institutional funds accelerate entry:

The passage of the three bills significantly enhances regulatory certainty in the cryptocurrency market, clarifying the regulatory identity of assets such as Bitcoin and Ethereum. This is expected to attract more traditional financial giants and institutional funds like pensions into the space, bringing more capital and liquidity to the cryptocurrency market.

4. Consolidating the dominance of private stablecoins:

The Anti-CBDC Act prohibits the Federal Reserve from issuing retail central bank digital currencies without Congressional authorization, ensuring the survival and dominance of private stablecoins like USDC and USDT. The status of stablecoin ecosystems will be further consolidated, and market share will no longer face the threat of "official competitors."

5. The U.S. competes for global cryptocurrency regulatory discourse:

The U.S. exports regulatory standards through legislation, creating a governance paradigm for global cryptocurrencies. Its regulatory framework for stablecoins and the division of regulatory authority may be referenced by other countries and regions, thereby playing a benchmark role in the global cryptocurrency field and influencing the global cryptocurrency market landscape.

ETH is in unlimited supply, what is its annual inflation rate?

ETH is in unlimited supply. Its annual inflation rate is not fixed and is influenced by various factors such as the number of stakers and network transaction activity.

According to a report by Sina Finance in September 2024, there were approximately 1.66M validators on Ethereum at that time, with a total weekly issuance of 23,300 ETH. This shows that approximately 500 million yuan needs to be absorbed by the market each week to accommodate ETH.

Why is Luna referred to as the 'Moutai of the Crypto Circle'?

Luna is called the 'Moutai of the Crypto Circle' mainly because its price rose significantly for a long time, ranking high in market capitalization within the cryptocurrency field, providing investors with substantial returns, similar to the performance of Moutai stocks in the A-share market.

Luna is the native token of the Terra blockchain platform. On March 12, 2020, the price of Luna was only $0.1201, and it subsequently surged, with an increase of over 800% throughout 2021. In April 2022, Luna reached an all-time high price of $119.18, with a market capitalization of $41 billion, ranking fifth among all cryptocurrencies by market capitalization. Its long-term price increase and high market value have given it a status in the crypto circle akin to that of Moutai as a 'benchmark for value investment' in the stock market, which is why it is referred to as the 'Moutai of the Crypto Circle' by crypto players.

However, in May 2022, the price of Luna plummeted, nearing zero, and its market capitalization almost 'evaporated', causing a significant shock in the crypto circle.

What are the reasons for BTC's price drop after the cryptocurrency bill was passed?

BTC's price drop after the cryptocurrency bill was passed is mainly related to the market's "realization of expectations" regarding the policy and subsequent uncertainties. The specific reasons can be summarized as follows:

1. Profit-taking after favorable news is exhausted: Before the bill was passed, the market had already priced in the positive expectation of "clear regulation of cryptocurrencies," driving BTC's price to a historical high. After the bill was officially enacted, some investors chose to cash out, leading to a short-term price correction.

2. Concerns about the details of the bill: Although the bill clarified the regulatory framework for stablecoins and other areas, the compliance requirements for cryptocurrency assets as a whole, tax treatment, operational details for exchanges, and other specifics have not yet been fully clarified. The market has concerns about potential compliance costs and restrictions, prompting some capital to withdraw for safety.

3. Impact of the macro market environment: The price of cryptocurrency assets is also influenced by the overall sentiment in the financial market. If U.S. stocks and other risk assets experience volatility, the dollar index changes, or global liquidity tightens during the same period, it may further impact BTC's price and exacerbate short-term downward pressure.

In summary, the short-term price drop is a normal reaction of the market to the "realization of favorable news," while also mixed with a wait-and-see attitude towards policy details and external market factors, which is a common phenomenon in the price fluctuations of cryptocurrency assets.

Why did the United States pass three major cryptocurrency bills?

The United States passed three major cryptocurrency bills mainly for the following reasons:

1. Consolidating the dominance of the dollar:

As the U.S. economy and trade share globally decline and the debt crisis intensifies, the status of the dollar faces challenges. The "Genius Act" links stablecoins to U.S. Treasury bonds, forming a closed loop of "dollar - stablecoin - U.S. Treasury bonds," which can expand the demand for the dollar, solidify its status as a reserve currency, and construct a "digital Bretton Woods system" to address the challenge of "de-dollarization."

2. Competing for the power to set global cryptocurrency rules:

The U.S. is attempting to export regulatory standards through legislation, creating a global governance paradigm for cryptocurrency. As the first country to legislate synchronously for stablecoins and regulatory frameworks, its regulatory model may be emulated by other countries and regions, thereby playing a benchmark role in the global cryptocurrency field.

3. Strengthening cryptocurrency regulation and market norms:

The cryptocurrency industry previously suffered from a lack of regulation, leading to frequent incidents like FTX, which severely impacted market and investor confidence. The "Genius Act" establishes a systematic legal status for payment-based stablecoins, clarifies issuance and reserve rules, and ends regulatory gray areas. The "Clarity Act" attempts to define the regulatory scope of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, providing clear rules for the cryptocurrency market and reducing market risks.

4. Protecting citizens' privacy and financial freedom:

The "Anti-CBDC Act" aims to prohibit the Federal Reserve from issuing retail Central Bank Digital Currency without Congressional authorization, preventing government agencies from excessively monitoring and intervening in personal financial transactions, safeguarding citizens' privacy rights and financial freedom, and establishing a "protective wall" for cryptocurrency.

5. Promoting U.S. economic development: The "Genius Act" requires stablecoins to be anchored to high-quality low-risk liquid assets like short-term U.S. Treasury bonds at a 1:1 ratio, which can transform personal payment demand into demand for U.S. Treasury bonds, enhancing the attractiveness of the Treasury bond market, lowering federal borrowing rates, and providing structural support for the U.S. economy.

Bitcoin has reached a high position, pay attention to the accompanying cryptocurrency legislation, let retail investors take over!!!

Recently, the price of Bitcoin has indeed been at a high level, breaking through the $120,000 mark on July 14, reaching a maximum of $123,091.61. Strangely, at the same time, several cryptocurrency bills are being promoted in the United States, such as the GENIUS Act, CLARITY Act, etc. The progress of these bills has increased the regulatory transparency of the cryptocurrency industry and has also affected the price of Bitcoin to some extent.

At this time, one should also be aware of "accompanying cryptocurrency legislation to let retail investors take over." The continuous emergence of favorable news at high levels is often a good opportunity for major players to offload their assets using positive news. Although some analyses suggest that the current upward trend of Bitcoin is still driven by retail investors, this does not mean that there are institutions or other forces using cryptocurrency legislation to induce retail investors to take over.

It is important to note that the Bitcoin market has a high level of risk and uncertainty, with severe price fluctuations. Investors should remain rational and cautious, avoiding blind following and excessive trading.

Will the U.S. stablecoin law bring new life to the stablecoin USTC?

The stablecoin regulations such as the "Guidance and Establishment of the National Stablecoin Innovation Act" passed by the U.S. Congress mainly target compliant, dollar-pegged payment stablecoins, imposing strict requirements on issuers, reserve assets, and more. For example, only three types of entities are allowed to issue payment stablecoins: subsidiaries of banks or credit unions, and non-bank financial institutions approved by federal regulators. Additionally, issuers must hold at least one dollar of compliant reserves for every one dollar of stablecoin issued, and compliant reserves are limited to U.S. dollar cash, bank insured deposits, short-term government bonds, etc. USTC, being an algorithmic stablecoin, exposed the systemic risks of algorithmic stablecoins during the collapse of TerraUSD in 2022, leading U.S. stablecoin regulations to exclude algorithmic stablecoins from the framework.

Moreover, although USTC's price performance has been poor, as of July 18, 2025, its price is $0.01398, with a market capitalization of $78.41 million and a 24H volatility of 3.9%. Its market performance and inherent characteristics do not currently align with the types of stablecoins supported and regulated by U.S. stablecoin laws. However, as an algorithmic stablecoin, USTC is continuously improving and refining, which may ultimately allow it to peg to the U.S. dollar and benefit from U.S. stablecoin laws in the end.

Does the U.S. Stablecoin Bill Impact the Stablecoin USTC?

The U.S. Stablecoin Bill does not directly impact USTC.

USTC (TerraClassicUSD) is an algorithmic stablecoin that was once a stablecoin project on the Terra blockchain. However, in May 2022, due to algorithmic design flaws and a collapse in market confidence, it depegged from the US dollar, its price plummeted, and it is no longer an effective stablecoin. Currently, USTC retains the title of algorithmic stablecoin and serves as a commemorative artifact of algorithmic stablecoin experimentation. Although it circulates in the market, it is highly speculative and has become an arbitrage tool in the capital market, merely serving as a bargaining chip for both long and short positions.

The U.S. "Clarity for Payment Stablecoins Act" primarily establishes a regulatory framework for stablecoins "pegged" to the US dollar, requiring stablecoins to be backed by the US dollar or liquid assets such as US short-term Treasury bonds, and requiring issuers to disclose monthly details of stablecoin reserves. This bill primarily targets eligible, operating stablecoin projects. USTC no longer falls into this category and is therefore not directly affected by the bill.

The phrase 'a sharp rise must be followed by a fall' is a common phenomenon description in the investment market, mainly referring to the situation where prices (such as stock prices, commodity prices, etc.) often experience a decline after rapidly rising to a certain high level.

This phenomenon is usually related to factors such as market supply and demand, and investor psychology:

1. When prices rise rapidly, investors who have made profits earlier may choose to sell to realize gains, leading to increased selling pressure;

2. At high levels, new investors may reduce buying due to concerns about risk, resulting in insufficient buying interest;

3. At the same time, market sentiment may shift from exuberance to caution, further pushing prices down.

However, this is not an absolute rule; it is merely a common market behavior, and actual trends will also be influenced by various factors such as the macro environment and fundamentals.

How has the market performed after the rebranding of EOS?

After rebranding to Vaulta, EOS exhibited strong market performance in the short term, but faces challenges for long-term development.

On March 18, 2025, EOS announced the rebranding to Vaulta and transitioned towards Web3 banking services. Following the announcement, the price of EOS surged rapidly, increasing by over 35% in the past 8 hours, breaking the $0.64 mark and reaching a recent high. Subsequently, the price of EOS continued to rise, climbing from around $0.43 in early April to $0.84 on May 8, 2025, nearly doubling.

However, in the long run, Vaulta's development faces numerous issues, such as technology not meeting expectations, slow ecological development, and failures in governance mechanisms, which could adversely affect its market performance.

The smooth passage of the three major cryptocurrency bills in the United States indeed marks the arrival of a strong regulatory era for cryptocurrencies.

1. "Genius Act":

As the first federal bill in the U.S. to establish a systematic legal status for payment stablecoins, it requires that only licensed banks or approved payment institutions can issue stablecoins, and they must hold 100% cash reserves in U.S. dollars or U.S. Treasury bonds, supplemented by regular audits and information disclosures. This ends the regulatory gray area for stablecoins, opening the door for traditional financial institutions and large tech payment companies to enter the market compliantly, while also accelerating the market reshuffling process in the stablecoin industry.

2. "Clarity Act": This bill attempts for the first time at the federal level in the U.S. to define "digital securities" and "digital commodities," classifying tokens such as Bitcoin and Ethereum that meet the definition of "mature blockchain" as commodities, regulated by the CFTC, while security tokens are regulated by the SEC. This clearly delineates the regulatory division of labor between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), to some extent weakening the SEC's regulatory power and providing a clearer regulatory framework for the crypto industry.

3. "Anti-CBDC Act": This bill aims to prohibit the Federal Reserve from issuing a CBDC independently without Congressional authorization, essentially reserving competitive space for market-issued U.S. dollar stablecoins and preventing an official digital dollar from directly replacing private stablecoins. This reflects a cautious attitude in the U.S. towards the development of digital currencies, while also embodying the maintenance of the existing financial system and market order.