Arizona tea makers have decided to step into the unsettled cryptocurrency ecosystem and bring true liquidity by backing a new stablecoin with a can of $0.99 iced tea.
It seems that Mossy, a group of talented tech artists, decided to use the most popular American brand of ice tea for a good cause. First some brief background, AriZona Iced Tea has been priced exactly the same since 1996, which even caught the attention of the LA Times, as it represents quite a rarity in the US, as inflation typically has a heavy impacy on retail brands.
In Search for Liquidity in Not-so-Solid Crypto Times
USDTea’s official website claims that the inspiration for the new stablecoin comes from a desire to “stabilize the troubled ecosystem”, and clearly states the difference between USDTea and the rest: “While other stablecoins attempt to peg to dollar amounts through questionable algorithms or opaque investment strategies, we guarantee our liquidity with sweet, delicious liquid.” That certainly does sound like a sweet deal.
Stablecoins, by their definition, are supposed to track assets to keep their value stable. For instance, the classic example of the U.S. dollar being backed by gold is the original stablecoin. On the other hand, the recent market crash caused by Terra (LUNA) and the Terra (UST) stablecoin collapsing laid the flaws of algorithmic stablecoins bare for all to see. Having no physical reserves led to a whopping amount of losses for investors—amounting to over $400 billion and counting. At press time, Terra Classic UST (UST) is trading at $0.03669 – 97% less than what is to be expected of a stablecoin backed by the USD.
Giving the Crypto Community Some Certain-Tea
The IT team at Mossy took inspiration from AriZona Iced Tea, which has been a pillar of stability for Americans for over 30 years, thanks to its founder Don Vultaggio, who eagerly asked on Twitter: “AriZona stablecoin when??” Sure enough, the three guys behind Mossy explained that “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.” People clearly enjoyed the offer, as the first 1000 cans were sold in less than two hours.
AriZona stablecoin when??
— AriZona Iced Tea (@DrinkAriZona) May 16, 2022