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Coinbase is incentivizing its users to convert their Tether (USDT) holdings for USD Coin (USDC), according to a Dec. 8 blog post.
Switch to a trusted stablecoin: USD Coin (USDC). Now convert Tether (USDT) to USDC with zero fees.https://t.co/OObSqNWdpj
â Coinbase (@coinbase) December 8, 2022
According to the US-based exchange, recent events have shown that customers needed stability and trust in fiat-backed stablecoins in times of volatility. Because of this, it revealed that it was waiving its fees for the conversion.
Coinbase said USDC was fully backed with âhigh-quality reserves,â adding that it delivers transparency via âmonthly attestations by Grant Thornton LLP.â
Tether has been subject to several regulatory scrutinies over its failure to provide adequate transparency over its reserves. The stablecoin issuer recently said it has cut down its commercial paper holdings to zero and will invest more in U.S. Treasury Bills and short-term government-issued debt.
Crypto community wary of Coinbaseâs offering
Several stakeholders in the crypto community have questioned Coinbaseâs motive, with some describing the move as âdesperate.â
Not a good look. Also looks desperate.
Makes me trust USDC a little less tbh.
â Byzantine General (@ByzGeneral) December 9, 2022
The strategy advisor at VanEck, Gabor Gurbacs, said:
âTether was the first stablecoin in the world and has been trusted by millions around the world since its inception. In fact if you ask people outside a narrow group in the US theyâd pick tether over USDC.â
Tetherâs CTO Paolo Ardoino retweeted Gurbacsâ statement. He also retweeted James Viggyâs statement that questioned how Coinbase has invested in the Bitcoin ecosystem development.
Meanwhile, BTCâs early investor Samson Mow opined that users should beware of companies that offer free stuff because âthe door in is usually big, but the door out is small.â
Always beware when companies offer free stuff. The door in is usually big, but the door out is small.
â Samson Mow (@Excellion) December 9, 2022
Tether remains the market leader
According to CryptoSlate data, Tether is the dominant stablecoin in the industry. It controls around 50% of the market, and its supply is over $65 billion. As of press time, USDT is responsible for 75% of stablecoinâs trading volume.
On the other hand, USDC is the second-largest stablecoin, with a circulating supply of $42.7 billion. Its supply shrunk by $10 billion following Binanceâs decision to convert its usersâ balance in USDC to BUSD.
The post Coinbase asks users to convert their USDT to USDC for free appeared first on CryptoSlate.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.