Coinbase encourages users to switch USDT to USDC for free
Coinbase is incentivizing its users to convert their Tether(USDT) holdings for USD Coin (USDC) at zero cost.
According to Coinbase recent events have shown that customers needed stability and trust in fiat-backed stablecoins in times of volatility it revealed that it was waiving its fees for the conversion.
Switch to a trusted stablecoin: USD Coin (USDC). Now convert Tether (USDT) to USDC with zero fees.https://t.co/OObSqNWdpj— Coinbase (@coinbase) December 8, 2022
Coinbase expressed USDC was fully backed with high-quality reserves it delivers transparency via monthly attestations by Grant Thornton LLP.
Tether has been subject to few regulatory scrutinies over its failure to provide adequate transparency over its reserves. According to the stablecoin issuer, it has cut down its commercial paper holdings to zero and will invest more in the US. Treasury bills and short-term government-issued debt.
Several stakeholders have questioned Coinbase's view with some describing the move as desperate.
Not a good look. Also looks desperate.— Byzantine General (@ByzGeneral) December 9, 2022
Makes me trust USDC a little less tbh.
Always beware when companies offer free stuff. The door in is usually big, but the door out is small.— Samson Mow (@Excellion) December 9, 2022
According to Gabor Gurbacs a strategy advisor at VanEck:
“Tether 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 they’d pick tether over USDC.”
Meanwhile, BTC's early investors Samson Mow opined that users should beware of companies offering free stuff because the door in is usually big but the door out is small.
post-strike FTX scoop: Just before the bankruptcy, @cz_binance accused @SBF_FTX of trying to drive down the price of Tether. They traded barbs in a group chat with other crypto execs. “The more damage you do now, the more jail time," CZ said. https://t.co/OTlYgoEruJ— David Yaffe-Bellany (@yaffebellany) December 9, 2022
Tether is the dominant stablecoin in the industry it controls approx 50% of the market and its supply to over $65 billion.
USDC is the second largest stablecoin with a $42.7 billion supply its supply shrunk by $10 billion after the express balanced decision to convert USDC to BUSD.