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.

Coinbase encourages users to switch USDT to USDC for free

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. 

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. 

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.

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.

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