Coinbase entices users to switch from USDT to USDC. Crypto Firm says Recent Events ‘Put some Stablecoins To the Test’
Coinbase, one the biggest cryptocurrency firms in the world, has published a blog that advises users to “switch over to the trusted digital dollar,” which refers to the stablecoin asset, usd coin. The blog post mentions that the stablecoin asset token tether can be switched to usd coin and that there are no fees to swap the two tokens.
Coinbase offers users zero fees to switch from Tether to Usd Coin.
Coinbase published a blog post on Thursday, December 8, 2022 and tweeted the following statement: “Switch To A Trusted Stablecoin: USDC (USDC) Convert tether (USDT), to USDC now with zero fees The blog post by the company explains more, noting that customers can exchange tether (USDT), for usd coin(USDC) “with no fees.” The blog post explains that recent events have shaken trust in the crypto industry.
“The events of these past weeks have put some stablecoins through the test and we’ve witnessed a flight to safety,” Coinbase’s blog posts explains. “We believe that [usdcoin] (USDC] is a trusted stablecoin. Therefore, we’re making it easier to switch: Starting today, we’re waiving fees to global retail customers to convert USDT into USDC.
The statements made by Coinbase gave crypto supporters the impression that the blog post was indirectly questioning Tether’s stabilitycoin, which is currently the largest stablecoin asset according to market cap. “Shots fired. “Bang bang,” Autism Capital’s Twitter account replied to Coinbase on the subject. Several other crypto supporters disagreed. Gabor Gurbacs (Strategy Advisor at Vaneck) stated that it was more likely that people would choose USDT.
Gurbacs responded to Coinbase’s tweet on Thursday, saying that “Tether was the original stablecoin in this world and has been trusted worldwide by millions of people since its inception.” Gurbacs said that tether is preferred to USDC if people were not from a small group of Americans.
The Byzantine General, a Twitter account, wrote: “Not good looking. Also looks desperate. This makes me less trust USDC. Curve Finance’s decentralized finance platform found a funny silver lining when Curve Finance’s Twitter account tweeted the following:
Yes, let’s move back and forth a lot. It’s a joy.
Coinbase’s statements follow the recent auto conversion from USDC to BUSD at Binance, Wazirx. In addition, USDC’s market value has fallen a lot in the past few months. USDC’s market capital reached a peak of more than 56 million nominal U.S. Dollars in June 2022.
Today, the USDC market capitalization is 23.57% lower at $42.80 trillion. Tether’s market capital has also fallen a lot, from a peak of more than 83 Billion nominal U.S. Dollars to $65.86 billion today. According to statistics, Tether’s market capital reached $83 billion in April 2022. It is now 20.65% lower as of Dec. 9, 2022.
What do you think of Coinbase’s recent statement about switching from tether coin to usd coin. Please comment below to let us know your thoughts on this topic.