The cryptocurrency world has debated about the real equivalent of stablecoins for a significant part of 2022. In the focus of these discussions, Tether company and its assets, which is the biggest player USDT it happened. Coinbase also shared an announcement that could trigger a similar discussion. Here are the details of the announcement.
Coinbase, Circle’s USD Coin (USDC) shared a new campaign highlighting the quality of the reserves that support it. The exchange announced that it will waive swap fees for users who want to switch to a trusted stablecoin.
The blog post published by Coinbase included opinions on stablecoins. After the events, the exchange announced that it tested some stablecoins and found a safe asset. The most reliable stablecoin in current conditions, according to the exchange USD Coins (USDC).
Coinbase stated that starting today, it is waiving fees for its retail customers to convert USDT to USDC.
Coinbase and USDC Relationship
Koinfinans.com As we reported, USDT is the third most traded asset on Coinbase, according to on-chain data. Trading at an average of $0.99, USDT accounts for 5% of the volume.
As a matter of fact, Coinbase is one of the co-founders of USDC stablecoin. As a result, such an announcement is hardly surprising.
Days after the collapse of FTX, Tether (USDT) lost 1:1. During this decline, the USDT value dropped as low as 93 cents. The majority of trading pairs on exchanges have returned to $1, but CoinGecko data shows that some pairs on Binance continue to trade at 99 cents.
In late September, Tether was ordered by a US judge in New York to create financial records regarding USDT support. That’s a separate request from the lawsuit heard in the New York Supreme Court, which asked the New York Attorney General to release the documents he gathered in his investigation into Tether’s reserves.
Recently, Binance ended support for USDC and automatically converted clients’ holdings to BUSD.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.