, 2022-05-18 16:37:49,
ICYMI, stablecoins are in deep shit right now, and the chaos that unfolded this week has thrown the entire crypto ecosystem into turmoil with over $400 billion in losses from just one coin alone. In these times of uncertainty, all we can rely on is that we can purchase a can of AriZona Iced Tea for 99 cents, the same price that the refreshing beverage sold for in 1996. Mossy, a collective of three techy artists, thinks that an (unofficially) AriZona-backed stablecoin can save the crypto economy.
A stablecoin, as the name implies, is supposed to be stable because it tracks the value of another asset — similar to how gold bars once backed the U.S. dollar during gold-standard times.
In the case of TerraUSD (UST), formerly one of the largest stablecoins that fell from grace this week, each UST coin was supposed to stay consistently equivalent in value to one U.S. dollar. But there were no physical reserves — instead, the group behind UST used algorithms and reserves of other cryptocurrencies to manage its price. That system went haywire, leading some holders of UST to withdraw their money, and before investors knew what had hit them, the panic and fear compounded and UST was trading as low as nine cents on the dollar. UST’s sudden collapse has led to over $400 billion in losses for investors over the past week or so, leaving people to question the, well, stability of stablecoins as a whole.
Mossy’s solution for the calamitous sector, a stablecoin called USDTea, is backed by what they claim is America’s most stable asset: cans of AriZona Iced Tea. For over 30 years, AriZona founder Don Vultaggio has been working tirelessly against inflation to keep the cost of each can at exactly 99 cents, playing hardball with suppliers to keep input costs low and…
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