UST

Overview of UST

TerraUSD (UST) is a kind of stablecoin cryptocurrency that was founded in 2018 by Daniel Shin and Do Kwon. The short name of this digital currency is UST. TerraUSD is supported by various popular cryptocurrency exchanges including Binance, Coinbase, and KuCoin. With regard to storage, users can keep their UST tokens in various kinds of wallets, such as Ledger, Trezor, and Trust Wallet. It aims to promote price stability relative to the US dollar, reducing the volatility typically associated with cryptos, thereby making it more usable as a daily currency.

Pros and Cons

Pros:

1. Price Stability - As a stablecoin, UST is designed to have a stable price, pegged to the US Dollar. This counters the high volatility often seen in other cryptocurrency markets, providing users with a more predictable asset.

2. Supported by Popular Exchanges - UST is recognized and supported by many popular cryptocurrency exchanges like Binance, Coinbase, and KuCoin. This enhances its liquidity and accessibility for users around the world.

3. Optional Storage Wallets- UST token holders have a choice of multiple storage wallets, such as Ledger, Trezor, and Trust Wallet. This freedom of choice can increase security and convenience for the users.

4. Reduced Volatility- Because UST's value is tied to the US Dollar, it has reduced volatility compared to cryptocurrencies whose prices fluctuate based on market conditions. This stability can be appealing to users looking for less risk.

Cons:

1. Dependent on US Dollar - The value of UST is directly tied to and dependent on the value of the US Dollar. If the USD weakens, the value of UST can decrease, leading to possible losses for token holders.

2. Limited Recognition as Currency - While UST aims to act like a currency, it is not yet widely adopted or recognized as such. Its limited recognition could impact its usability for everyday transactions.

3. Not as Accepted as Traditional Currency - Despite being tied to the US Dollar, UST is not accepted in as many places as traditional currency. This limits its practical use in everyday transactions.

4. Possible Loss of Value if USD Weakens - If the US Dollar was to lose value or suffer from inflation, UST would likewise lose value. This makes UST less suitable for long-term holding compared to some other assets.

What Makes UST Unique？

TerraUSD (UST) is an innovation in the cryptocurrency space due to its status as a stablecoin; a class of cryptocurrencies intended to offer price stability by being pegged to a certain value or reserve, in this case, the US Dollar. This contrasts with most other cryptocurrencies that are highly volatile and can experience significant price changes in relatively short periods of time.

Another notable distinction is that TerraUSD aims to function more like a currency to be used in daily transactions (much like traditional fiat currencies), rather than primarily being seen as an investment or speculative asset. This is facilitated by its designed stability, though its acceptance as a medium of regular transaction is still not on par with traditional currencies.

However, it must be noted that this dependence upon the US Dollar for pegging its value also makes UST susceptible to changes in the value of the USD. If the USD were to weaken significantly, it would directly impact the value of TerraUSD. In contrast, many other cryptocurrencies, like Bitcoin or Ethereum, operate independently of traditional currency value.

Lastly, it is important to highlight the broad exchange and wallet support for UST. Many popular crypto exchanges and wallets support UST which offers more transactional flexibility to its users compared to some other cryptocurrencies which might not have as broad a range of support. Even so, it closely mirrors the kind of wallet and exchange support seen by many mainstream cryptocurrencies.

Circulation of UST

Circulating Supply

The circulating supply of UST is currently 11.28 billion tokens. This means that these are the tokens that are currently available to buy and sell on exchanges. The total supply of UST is 11.28 billion tokens, but all of the tokens are currently in circulation.

Price Fluctuation

The price of UST is designed to be pegged to the US dollar, meaning that it should always be worth $1. However, UST has experienced significant price fluctuations since its launch in May 2019. In May 2022, UST depegged from the US dollar and fell to a low of $0.0065. UST has since recovered somewhat, but it is still trading well below its $1 peg.

There are a number of factors that can contribute to the price fluctuation of UST, including:

• Supply and demand: The price of UST is determined by the supply of tokens available and the demand for those tokens. If there is more demand for UST than there is supply, the price will go up. Conversely, if there is more supply of UST than there is demand, the price will go down.

• News and market sentiment: Positive news and developments surrounding UST can boost demand for the token and drive up the price. Conversely, negative news and developments can dampen demand and drive down the price.

• Overall market conditions: The cryptocurrency market as a whole is volatile and can experience significant price fluctuations. UST is not immune to these fluctuations and its price can be affected by broader market conditions.

Additional Notes

UST is an algorithmic stablecoin, meaning that it uses a complex algorithm to maintain its peg to the US dollar. The UST algorithm works by burning and minting LUNA tokens, the sister token of UST.

The Terra team is working on a number of initiatives to improve the stability of UST, including launching new features and expanding the Terra ecosystem. If the team is successful in executing on its plans, this could help to reduce the price volatility of UST.

Overall, UST is a promising project with a number of potential benefits. However, it is important to be aware of the risks associated with investing in an algorithmic stablecoin, including the risk of price volatility and depegging.

Investors should carefully consider their own risk tolerance and investment goals before investing in UST.

How Does UST Work？

TerraUSD (UST) operates as a stablecoin, meaning it is designed to maintain a stable value as opposed to high volatility which is generally seen in the cryptocurrency market. It achieves this stable nature by pegging its value to the US Dollar, hence the term 'stablecoin'.

In terms of working principle, when a user conducts a transaction or trades using UST, the Terra protocol mints or burns the exact amount of UST to keep its supply and demand in equilibrium. This means, when demand rises and UST's price goes above $1, more UST is minted. Conversely, when demand decreases and UST's price falls below $1, UST is burned or bought back to reduce supply, thereby stabilizing its price.

The Terra protocol uses an algorithm to automatically adjust the supply of UST depending on its price fluctuations. The main aim is to always try and keep USTs value as close to $1 as possible. This principle offers a level of price stability not seen in many other traditional cryptocurrencies, which are known for their price volatility. This stability can increase the utility of UST for everyday transactions, as its purchasing power remains more consistent than that of many other cryptocurrencies. However, like all stablecoins dependant on a fiat currency, UST's stability and value are reliant on the strength of the US Dollar.

Exchanges to Buy UST

TerraUSD (UST) is supported by a plethora of exchanges, each offering different trade pairs to facilitate buying and selling according to user preference. Many major exchanges have recognised its utility and potential, including:

1. Binance - One of the largest and most popular cryptocurrency exchanges in the world. Binance supports trading pairs of UST with cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), along with fiat trading pairs such as UST/USD.

2. Coinbase - Another dominant player in the crypto exchange industry, Coinbase supports UST trading pairs with Bitcoin (BTC) and Ethereum (ETH), among others.

3. KuCoin - KuCoin supports UST trading pairs with multiple cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH).

4. Kraken - This platform offers trading pairs of UST with Bitcoin (BTC) and Ethereum (ETH), among other cryptocurrencies.

5. Huobi Global - As one of the leading crypto exchanges, Huobi offers numerous UST trading pairs, such as UST/BTC, UST/ETH, UST/HT, etc.

6. Bitfinex - Bitfinex offers UST trading pairs with several cryptocurrencies and also supports fiat currency pairs such as UST/USD.

7. FTX - This exchange supports UST/crypto pairs, such as UST/BTC and UST/ETH.

8. OKEx - OKEx accepts UST and has numerous trading pairs, including UST/BTC, UST/ETH, and UST/OKB.

9. Gate.io - UST trading is facilitated with various crypto pairs like UST/BTC, UST/ETH, etc.

10. Bittrex - This platform offers several trading pairs with UST, including ones with Bitcoin (BTC) and Ethereum (ETH).

The availability of UST in these exchanges not only enhances its liquidity but also improves access and convenience for users worldwide. It's always recommended to confirm the available trading pairs on the exchange's platform since the trading options may vary and be updated from time to time.

How to Store UST？

UST tokens can be stored in different types of wallets, offering users convenience and versatility. Here are some categories of wallets frequently used for UST storage:

1. Hardware Wallets: These are physical devices designed to securely hold the private keys of your cryptocurrencies. They provide top-level security as they keep your keys offline and are immune to computer viruses. Ledger and Trezor are among the leading hardware wallets that are known to support UST.

2. Software Wallets: These are applications or programs that can be installed on your computer or your smartphone. They generate the private keys of your cryptocurrencies on the device they are installed on, and some may offer the option of a backup to be used in case the device is lost. Trust Wallet is a software wallet that supports UST.

3. Web Wallets: These are websites that allow you to store and manage the private keys of your cryptocurrencies online. They are easily accessible from different devices via internet connection, but they rely on the website or the servers security. You should be cautious with these types of wallets since they are vulnerable to hacking attacks. Some of the most used web wallets for UST could be found on the exchanges themselves, like Binance or Coinbase.

4. Mobile Wallets: These are applications installed on your smartphone. Mobile wallets generally have the benefit of scanning QR codes to quickly execute transactions and can be used anywhere including brick-and-mortar stores. Trust Wallet, as a mobile-first wallet, also supports UST storage.

All these wallet types provide different levels of security, ease of use, and accessibility. The choice of which to use may depend on the user's specific needs and preferences. Users should be cautious to use wallets from trustworthy sources to reduce the risk of theft or loss.

Should You Buy UST？

In the realm of cryptocurrencies, UST, or TerraUSD, caters to a wider range of users, given its stablecoin nature and multiple-use cases:

1. Frequent Traders: People frequently trading or investing in highly volatile cryptocurrencies may find UST useful as a place to temporarily park their assets during periods of high market volatility.

2. Online Shoppers or Businesses: Those who regularly engage in e-commerce transactions, and prefer to use cryptocurrency over traditional payment methods, may consider UST. It offers the stability of traditional fiat currency while still maintaining the benefits of blockchain technology, such as transparency and security.

3. People Living in Economically Unstable Regions: If one resides in a region with a volatile national currency, holding and transacting in UST can be a reliable alternative to maintain the value of their money.

4.Crypto Enthusiasts: UST provides a suitable option for those who wish to be part of the crypto space while avoiding the price volatility associated with common cryptocurrencies.

As for advice to potential buyers:

A. Research and Understand: Before buying any cryptocurrency, including UST, make sure you understand what it is, how it works, and what influences its value. The cryptospace is complex, and knowledge is crucial for informed decision-making.

B. Diversify Your Portfolio: It's always a good strategy not to put all your eggs in one basket. While UST is a stablecoin, consider diversifying your investment across different asset types to spread the risk.

C. Consider Your Risk Appetite: If your preference leans towards less volatile assets, then a stablecoin like UST might suit you. If you're willing to take higher risks for potentially higher rewards, you might want to explore other cryptocurrencies.

D. Stay Informed: The cryptocurrency space is fast evolving with regulatory news, technical developments, and market trends, which can all influence the value of your cryptocurrency. Staying up-to-date can help you make timely decisions.

E. Secure Your Holdings: Security is a primary concern; follow best practices to secure your assets. This includes using secure wallet for storing your UST, being wary of phishing attempts, and regularly updating your wallet or exchange software.

Remember, investing in cryptocurrencies always comes with risks. Consult with a financial advisor before making any investment decisions.

Conclusion

TerraUSD (UST) is a type of stablecoin cryptocurrency designed to maintain a value equivalent to the US Dollar. It was developed in 2018 by Terraform Labs, founded by Daniel Shin and Do Kwon. UST is supported by numerous popular exchanges and offers a variety of storage wallet options.

The main attraction of UST is its price stability when compared to the majority of cryptocurrencies which tend to be highly volatile. This feature makes it a potential candidate for daily transactions and a possible refuge during market uncertainties.

However, like any stablecoin tied to a fiat currency, UST's value is also contingent on the performance of the US Dollar, making its stability relative to the strength or weakness of the USD. It also faces challenges in terms of limited recognition as a traditional currency and acceptance in daily transactions.

Regarding its development prospects, UST aims to be used more as a currency for everyday transactions rather than purely being an investment or speculative asset. Its adoption and use-case scenarios might grow as more businesses and platforms begin to accept stablecoins or cryptos for regular transactions. However, this largely depends on the evolving regulatory and market dynamics.

As for making money or appreciating in value, UST, being a stablecoin, is not intended to appreciate much above its pegged value of $1. Instead, its primary purpose is to provide stability and reduce volatility, unlike other cryptocurrencies which can appreciate (or depreciate) significantly based on market movements. Therefore, UST might not be the best choice if one is looking to invest in a cryptocurrency for potential capital appreciation. Nonetheless, it could serve as a tool for managing risks, conducting transactions, or preserving the value of assets amidst market volatility.

As always, any investment in cryptocurrencies should be approached with a thorough understanding of the product and the market, complete with due diligence and possibly guidance from financial advisors.

FAQs

Q: Where can UST tokens be traded？

A: UST can be bought and sold on various popular cryptocurrency exchanges such as Binance, Coinbase, and KuCoin, among others.

Q: What makes TerraUSD's value steady？

A: TerraUSD maintains a stable price by being pegged to the US Dollar and the protocol regulates its supply to maintain its price near $1.

Q: How can TerraUSD (UST) be stored safely？

A: UST can be securely stored in different types of wallets including hardware wallets like Ledger and Trezor, and software wallets like Trust Wallet.

Q: Is UST widely recognized as a form of currency？

A: While UST is designed to function as a stable currency, its recognition and acceptance for everyday transactions still remain limited compared to traditional currencies.

Q: What is the risk associated with the value of UST？

A: The value of UST is tied to the US Dollar, so any fall in the value of the USD can potentially decrease the value of UST, causing losses for its holders.

Q: How is UST distinguished from other cryptocurrencies？

A: UST, a stablecoin, stands out for its price stability compared to the significant volatility often seen in other cryptocurrencies, and its aim to function as a regular currency for everyday transactions.

Q: Can I expect large profits from holding TerraUSD？

A: As a stablecoin, UST's primary goal is to maintain stability and it is not aimed at significant appreciation in value, thus it is not typically associated with large profit potential akin to volatile cryptocurrencies.

Risk Warning

Investing in cryptocurrencies requires an understanding of potential risks, including unstable prices, security threats, and regulatory shifts. Thorough research and professional guidance are advised for any such investment activities, recognizing these mentioned risks are just part of a wider risk environment.