In a recent blog post, the cryptocurrency exchange encouraged users to switch from USDT to USDC, highlighting the latter stablecoin as a “trusted and reputable digital dollar.” and also waived the conversion fees.
This is coming amidst a stablecoin war in the industry as exchanges are now stepping up to claim dominance of their native stablecoins. Binance also recently stopped supporting USDC, and auto-converted customer holdings into BUSD which is its native stablecoin.
After being thrown out of Binance, the companies spearheading USDC have begun to map out new plans aimed at bolstering the growth of the stablecoin.
In 2018, USDC was co-founded by Coinbase and issued by Circle its affiliated company. It also delivers attestations on a monthly basis by Grant Thornton LLP, which is one of America’s largest audit, advisory, and tax firms. On the other hand, Tether has been subjected to a lot of controversies with a bulk of the issue all about the stablecoin issuer publishing a full audit. Although the company has continuously dismissed FUDs and maintains its stance that the reserves are fully backed.
However, Its rival stablecoin has managed to avoid such scrutiny. As a matter of fact, USDC has grown into becoming a serious contender of already established market leader USDT over the past four years. USDT is the largest stablecoin with a market cap of $65.7 billion and is followed by USDC which stands at $42.7 billion.
The insolvency of FTX has raised a spotlight across the crypto market. The unveiling of FTX contagion and the subsequent fall of dominos have put some stablecoins to the test, which is now considered a flight to safety. In that regard, Coinbase has emphasized the importance of trust in the USDC ecosystem.
This move is coming as a surprise because on average the transaction fee makes up the bulk of its revenue. And as a result of the bear market, the trading revenue has already declined by approximately 50% or more when compared with that of the past year. This information was revealed by Brian Armstrong the CEO of Coinbase during an interview with Bloomberg’s David Rubenstein Show.
Featured Image Source: coinjournal.net
