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Coinbase, one of the largest cryptocurrency firms in the industry, has published a blog post asking users to “switch to the trusted and recognized digital dollar”, referring to the usd coin for the stablecoin property. The company’s blog post specifically mentions the exchange of stablecoin asset tethers to usd coins, and the firm offers “zero fees” for exchanging these two tokens.
On Thursday, December 8, 2022, Coinbase shared a new blog post and tweeted the statement: “Switch to a reliable stablecoin: usd coin (USDC). Now convert tether (USDT) to USDC with zero fees.” The company’s blog post goes into more detail as it notes that customers can exchange tether (USDT) for usd coin (USDC) “with zero fees.” The blog post notes that events that have taken place over the past few weeks have shaken the confidence of the crypto industry.
“The events of the past few weeks have put some stablecoins to the test, and we’ve seen a flight to safety,” explains Coinbase’s blog post. “We believe that [usd coin] (USDC) is a trusted and recognized stablecoin, so we’re making it more frictionless to exchange: Starting today, we’re waiving fees for global retail customers to convert USDT to USDC.”
Coinbase’s statements gave crypto followers the perception that the blog post indirectly questioned Tether’s stablecoin, the current largest stablecoin asset by market capitalization today. “Shots fired. Bang bang,” the Twitter account known as Autism Capital black to Coinbase’s tweet on the subject. A number of other crypto supporters disagreed with Coinbase’s statements. The strategy advisor at Vaneck, Gabor Gurbacs, believed that people were more likely to choose USDT.
“Tether was the first stable coin in the world and has been trusted by millions around the world since its inception,” Gurbacs so in a response to Coinbase’s tweet on Thursday. “In fact if you ask people outside a narrow group in the US, they would choose Tether over USDC,” Gurbacs added.
The Twitter account known as the Byzantine General wrote: “Not a good look. Also looks desperate. Makes me trust the USDC a little less.” The operators of the decentralized finance (defi) platform Curve Finance found a humorous silver lining in the situation when the defi platform’s Twitter account tweeted:
Yes, let’s switch back and forth very often. Love it.
The statements from Coinbase follow the recent automatic conversion from USDC to BUSD events at Binance and Wazirx. In addition, USDC’s market value has fallen a lot in recent months. USDC’s market capitalization peaked at more than 56 billion nominal US dollars in June 2022.
Today USDC market cap is 23.57% lower at $42.80 billion. However, Tether’s market cap has also shrunk a lot, falling from a peak of more than 83 billion nominal US dollars to today’s $65.86 billion. Tether’s market capitalization reached the highest of $83 billion in April 2022 and is now 20.65% lower according to statistics recorded on December 9, 2022.
What do you think of Coinbase’s recent statement regarding the switch from tether to usd coins? Let us know what you think about this topic in the comments section below.
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