Hi tea lovers, We have an interesting story for you, probably better than your tea. A new stablecoin backed by a can of AriZona Iced Tea has risen from the ashes of the TerraUSD (UST) catastrophe. Mossy, a group of three IT artists, decided to establish a new stablecoin backed by America’s number one iced tea company, which has been selling cans of iced tea for $0.99 since 1996.
Because it monitors the value of another asset, a stablecoin should remain stable. This is similar to the gold standard, which formerly specified that each US dollar is backed by gold. TerraUSD was algorithm-based, which meant there were no actual reserves, resulting in a $400 billion loss for investors.
As a result, Mossy decided to establish a stablecoin backed by America’s most stable asset: AriZona Iced Tea Cans, whose owner Don Vultaggio has managed to keep the price of one can constant for the past 30 years. Vultaggio even joined in the meme fun recently by tweeting his support for the AriZona stablecoin.
The USDTea explains their stablecoin in the following manner:
“Each USDTea is worth one 23-ounce can of AriZona Iced Tea and can be redeemed for one. We’ll send you real cans of AriZona if you send us your tokens and a processing fee. Our quants can only ship tea within the United States due to computational complexity.”
The term “stablecoin” refers to a cryptocurrency that tracks the value of another asset, akin to the gold standard, which originally stipulated that each US dollar is backed by the precious metal. The TerraUSD was algorithm-based, which meant there were no physical reserves, resulting in a $400 billion loss for investors, leaving many to doubt the “stability” of stablecoins in general.
As a result, the group decided to create a stablecoin backed by “America’s most stable asset”: AriZona Iced Tea Cans, whose owner, Don Vultaggio, has kept the price of a single can constant for the past 30 years.
The ERC20 cryptocurrency Ethereum blockchain is used by USDTea. USDTea will begin operations with an initial supply of 1,000 tokens to ensure fiduciary commitment, according to the developers. The reserves will then be steadily increased.
The stablecoin’s operations are simple, as users simply transfer tokens and a processing fee in return for real cans of iced tea.
Hmm, imagine your Nukkad Tea stall starting its own stablecoin. Think!
Read more: UK’s financial regulator alert towards stablecoins after Terra’s collapse
