Terra Classic USD (Wormhole)
Crypto Overview
Overview
Terra Classic USD (USTC), formerly known as TerraUSD (UST), was designed as an algorithmic stablecoin meant to maintain a 1:1 peg with the US Dollar through a complex mechanism involving the LUNA token. Following the collapse of the Terra ecosystem in May 2022, it lost its peg and now trades as a highly volatile cryptocurrency.
Purpose and Utility
Original Purpose: USTC was created to serve as a stable medium of exchange and store of value in the Terra ecosystem. The intended utility was to facilitate decentralized payments and financial services.
Current Status: After the ecosystem's collapse, USTC has lost its original utility as a stablecoin. It now primarily exists as a speculative trading asset with no clear utility beyond potential price speculation.
Business Model Evaluation
The original business model involved maintaining price stability through algorithmic mechanisms. After the collapse, there is no functional business model supporting the token. Trading of the token involves direct ownership transfer and is not inherently haram, though the project's utility is severely limited.
Development Activity
Development on the original Terra Classic chain continues through community efforts, but USTC specifically has no significant development activity. The token exists primarily as a trading vehicle on various exchanges.
Token Distribution and Governance
The token distribution is now primarily determined by market trading, with no significant founder control following the ecosystem's collapse. The original development team has largely abandoned the project in favor of Terra 2.0.
Crypto Impact
To assign a comfort level investing in Terra Classic USD (Wormhole) from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Terra Classic USD (Wormhole).
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.