TerraClassicUSD

**WARNING: TerraClassicUSD has triggered a critical safety failure: it is effectively depegged and trading far below its intended $1 stablecoin value. Treat this token as extremely dangerous for any use case requiring price stability, settlement, or collateral. According to security analysis of the token’s market behavior, the peg has failed.** **Peg stability context:** On-chain and market behavior indicate the stablecoin is not maintaining a $1 target value and is trading at a fraction of its supposed unit. For a “stablecoin,” this peg break typically reflects underlying backing, liquidity, or redemption failures—meaning holders may not reliably redeem, hedge, or use it as a stable unit. **Stability and risk context:** When a stablecoin depegs this severely, transfers and DeFi interactions can behave unpredictably: pricing becomes unreliable, collateral calculations can fail, liquidation thresholds may be wrong, and arbitrage liquidity may be insufficient. If you’re using it for payments, lending, or trading collateral, you face rapid value loss and settlement risk. **Recommendation:** Avoid TerraClassicUSD entirely. Do not treat it as a stable unit, collateral, or safe parking asset until the peg is restored and sustained with transparent, verifiable backing and redemption mechanisms. Consider switching to assets with consistently maintained peg performance.

• Do Kwon - CEO LinkedIn ↗
  Prior: Terraform Labs
  Do Kwon was arrested in South Korea in connection with the collapse of the Terra ecosystem. ([iq.wiki](https://iq.wiki/wiki/terraclassicusd-ustc?utm_source=openai))
• Daniel Shin - Co-founder LinkedIn ↗
  Prior: Fast Track Asia, TMON
  Daniel Shin avoided arrest in South Korea. ([iq.wiki](https://iq.wiki/wiki/terraclassicusd-ustc?utm_source=openai))

• JS Held 2022-05-16 pass report ↗
  Audit confirmed that LFG spent 80,081 BTC and $49.8 million in stablecoins to defend the UST peg, consistent with LFG's statements.