In the wake of the collapse of algorithmic stablecoin TerraUSD ($UST), a group of three tech artists have launched a stablecoin backed by a can of AriZona Iced Tea, which is America’s #1 iced tea brand.
According to a report by TechCrunch, Mossy, a collective of three “techy artists” have created a new Ethereum-powered stablecoin named USDTea. The price of a “Big Can” of AriZona Iced Tea has remained at $0.99 for the past 30 years.
The creators of the say (on the USDTea website):
“We plan to stabilize the troubled cryptocurrency ecosystem by introducing a new token backed by a hard asset that has maintained the same price for over 30 years: AriZona Iced Tea. While other stablecoins attempt to peg to dollar amounts through questionable algorithms or opaque investment strategies, we guarantee our liquidity with sweet, delicious liquid…
“Each USDTea is equivalent to and redeemable for one 23 ounce can of AriZona Iced Tea. Simply send us your tokens as well as a processing fee and we’ll ship you physical cans of AriZona. Due to algorithmic complexity, our quants are only able to ship tea within the United States…
“USDTea is implemented as ERC20 tokens on the Ethereum blockchain. To maintain fiduciary responsibility, we’re starting small with an initial supply of 1000 tokens, then slowly issuing more as we build up our tea reserves.“
Speaking in an interview with TechCrunch, Mossy’s Brian Moore said the group’s token sold out roughly an hour and a half after launch, which he said was indicative of the “weirdness of this world.” Moore revealed that the group actually had 1,000 cans of the tea-based beverage on hand, saying that they might expand in the future to offer more tokens.
Moore was asked whether his group conceived the idea for USDTea in the aftermath of TerraUSD’s high-profile collapse.
The tech artist replied,
Exactly. There’s something to be said about the stability of stablecoins, right? That’s half the word, stable. And then you think, what’s the most stable thing you can imagine? AriZona Iced Tea, you really can’t beat it.
Moore explained that the group did not intend to make money off of the project, but was instead focused on “making interesting work on the internet.”
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