this, is indeed an act of war where Coinbase goes after Tether (USDT) with a bold attempt to send it. Binance did the same to FTX and their whole amphetamine consuming bohemian team. Perhaps, this is a time of war in the crypto sector, this is the time for contempt and destruction when the utopian dreams of decentralization go to bleed out. Big fish eats small fish and whatnot. Yet, there is so much written in between the lines in all those seemingly righteous Tweets. Questions remain not only unanswered but unasked even. Coinbase, a cryptocurrency exchange that initially started out in 2012, has issued a strong warning for clients to dump their Tether (USDT). Now, Tether is no saint but here’s food for thought, how come it took Coinbase 10 whole years to realize this issue? With all the hostility going around, crypto market seems to be tying up loose ends. Terra (LUNA), FTX, Genesis, 3AC and now Tether. And once again, we have an industry titan stirring up the chilli pot and investors are about to lose money.
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It’s Your Turn Tether (USDT)!
Last week, crypto influencer Ben Armstrong exposed Deltec Bank (essentially Tether headquarters) on almost all social media platforms. In short, a lot of the places where Tether was supposed to be holding their reserves were actually empty. So, pretty much a big scandal as it seems. However, this huge scandal is in fact the imaginary blood cells that runs through the veins of the entirety of crypto market. Terrifying to say the least!
It would be impossible to actually point out the importance of USDT for the crypto market. For god’s sake, this is the most popular stablecoin since the beginning of cryptocurrencies and still is up to this day.
And now, the number one crypto exchange in the US has issued a serious warning to its investors. According to a blog post, Coinbase is advising customers to convert their Tether (USDT) holdings to USD Coin (USDC). They have cited market turmoil as a possible cause for a possible destabilizing and subsequent depegging of USDT.
With that, Coinbase has called Circle’s USD Coin as a safe and stable alternative for USDT.
USDC Vs. USDT
For further encouragement to take action, Coinbase will be waiving fees to convert Tether to USD Coin.
“Now more than ever, stability and trust are of the utmost importance to customers. Fiat-backed stablecoins (cryptocurrencies pegged to reserve assets like the U.S. dollar) provide customers stability and confidence during times of volatility.
However, the events of the past few weeks have put some stablecoins to the test and we’ve seen a flight to safety. We believe that USD Coin (USDC) is a trusted and reputable stablecoin, so we’re making it more frictionless to switch: starting today we’re waiving fees for global retail customers to convert USDT to USDC.”
But here’s the catch, USD Coin is a stablecoin created by Coinbase and payments platform Circle in 2018. Fundamentally, Coinbase is creating a massive FUD to promote their own product as a better alternative. In the meantime, Tether has been exposed and is pretty much caught red handed.
At the moment, Tether (USDT) is the third cryptocurrency in the ranks with a market cap of over $65 billion USD. On the other hand, USD Coin is 5th in the ranks with a market cap of over $42 billion.
By the looks of it, Coinbase is aiming to topple the stablecoin giant once and for all and go all in. As for their approach, they have chosen customer safety as their motto. But, this is the same Coinbase that sold user data to the highest bidder, leaked thousands of user accounts in a hack and failed miserable with their algorithmic stablecoin GYEN.
This discourse, used by CZ Binance, used by Coinbase, overused by people like Michael Saylor and even Ben Armstrong, is nauseating. And sadly, crypto is drowning in a never-ending flood of nauseating discourse.