It was a stablecoin, but it has now become a meme coin thanks to Terra Labs and Do Kwon. I don't know how the hell they thought that they were going to create an algorithmic stablecoin and it's going to work, without it having any backing of actual assets and it will be directly connected with LUNA which was the main coin of the project which was also ruined because of USTC and it's failure. The failure of the algorithmic stablecoin caused the project to fail miserably.
What a bad time for luna team, Luna and ustc holder and whole crypto market. This bad event happened when everyone have fully trust on luna project and people were waiting when Luna will down below 50$ so they grap more token for long term. No one know that very soon luna candle will always go out. The bad strategy ruined the whole devolped project and create history for other projects to learn from it.
To be honest, I don't see any hope for USTC, LUNA, or LUNC to gain substantial value in the future. I believe they will always just be small altcoins with volatile prices that people might trade for small amounts of profit but there will barely be investors who would think of buying and holding any of them.
True, there is no future for any Luna related token. it is possible that token pump for some days just ustc are seen many times but then it will again dump to back state. 1$ is almost impossible now