Coinbase: Sell This Altcoin! Switch to That Coin

In a new blog post, cryptocurrency exchange Coinbase made a controversial statement. It encouraged users to switch from USDT to USDC. He highlighted USDC as a “trusted and reputable digital dollar.” He stated that he will not charge transaction fees from users who will convert their USDT to USDC. Here are the details…

USDC incentive from Coinbase

Leading American exchange Coinbase has urged its users to convert their Tether (USDT) to USD Coin (USDC). The development comes amid a stablecoin war in the industry. Exchanges are accelerating to ensure the dominance of their native stablecoins. As we have reported as Kriptokoin.com, at times Binance stopped supporting USDC. The client automatically converted their assets into their stablecoin BUSD. After exiting Binance, USDC pioneering company Coinbase came up with new plans to support the growth of the stablecoin.

USDC was co-founded by Coinbase and published by its subsidiary Circle in 2018. It also offers monthly attestations by Grant Thornton LLP, one of America’s largest auditing, tax and consulting firms. Tether, on the other hand, publishes quarterly audit reports and presents the results online on its website. According to the latest audit, Tether tokens are fully backed by reserves.

About 82.45 percent of Tether reserves include cash, other short-term deposits and commercial paper. It consists of 9.02 percent secured loans, 4.69% corporate bonds, funds and precious metals and 3.85% other investments.

Tether scare makes USDC a major competitor

However, many doubts arose over Tether’s reserves. Rumors and speculations about the insufficient reserve of USDT are almost as old as the crypto market. Over the past few years, Tether critics have tried to prove USDT is a scam. But so far, Tether has survived every attack and every bear market. Remarkably, USDT is the oldest of all stablecoins.

Yet over the past four years, USDC has become a serious competitor to the already established market leader USDT. With a market cap of $65.7 billion, USDT is the largest stablecoin, followed by USDC with $42.7 billion. FTX’s bankruptcy has drawn attention in the crypto market. The FTX epidemic and subsequent collapse of other platforms has put some stablecoins that are typically considered safe to the test. In this context, Coinbase emphasized the importance of trust in the USDC ecosystem.

Coinbase is having a tough year

The zero transaction fee move came as a surprise, as the average transaction fee makes up the bulk of its revenue. The bear market led to a nearly 50 percent drop in the exchange’s trading revenue compared to last year. This was revealed in a statement by Coinbase CEO Brian Armstrong.