Coinbase vs. Binance – USDC. USDT or USDUSD?
Coinbase waived conversion fees in an effort to encourage customers to change from USDT to USDC. Meanwhile, Binance has delisted USDC trading pairs and is pushing its own BUSD stablecoin.Stablecoin warsCryptocurrency exchanges Coinbase and Binance have recently been at the centre of the so-called “stablecoin wars.” Coinbase has asked its users to switch their US Dollar Tether (USDT) holdings to USDC, while Binance has chosen to stick with USDT and its own BUSD. This could have implications on traders’ portfolios as each stablecoin is unique. Coinbase encourages its users to change their USDT to USDC to get a US-dollar-backed stablecoin. AlternativeUSDC is an Ethereum-based token, which is backed by a US Dollar reserve and is managed by the CENTRE Consortium. The USDC token is intended to be more transparent and more cost-effective than USDT. Coinbase claims that USDC has been more frequently audited than USDT. Coinbase also offers a feature that allows users convert USDT to USDC. Binance, however, has chosen to stick to USDT. Tether Limited issues USDT, a stablecoin pegged to the US Dollar. USDT currently holds the largest stablecoin market share and is used by many traders to store and transfer value. Although USDT has been criticised for its lack of transparency and audits in the past, the coin has managed to stay afloat thanks to its large user base. It can be difficult for traders to decide between USDC or USDT. USDC is more transparent and is backed with a reserve. However, it is also more costly to use. USDT is more popular, but it is less secure and transparent than USDC. The decision between the two coins comes down to personal preference and each trader’s specific needs. Which stablecoin will prevail? Coinbase and Binance are both involved in the stablecoin wars. Traders should be aware of the differences between USDC or USDT when making a decision. It will be interesting to see which stablecoin will take over as the main method to transact between cryptocurrency (USD) and USDT with stablecoin regulation rapidly approaching. This article is not intended to be used in place of legal, tax, investment, or financial advice.