Indeed, this is an act of war where Coinbase targets Tether (USDT) with a bold attempt to send it. Binance executed a similar strategy against FTX and their entire amphetamine-consuming bohemian team. It appears that the cryptocurrency sector is entering a state of conflict, a time for contempt and destruction when the utopian aspirations of decentralization begin to unravel. Larger entities prey on smaller ones, as is the nature of the market. However, there are significant undertones in all those seemingly righteous Tweets.
Questions remain not only unanswered but also unasked. Coinbase, a cryptocurrency exchange founded in 2012, has issued a stern warning to its clients, urging them to sell their Tether (USDT). While Tether may not be without flaws, it raises questions about why Coinbase took a decade to identify this issue. Amidst the ongoing hostility in the crypto market, it seems that loose ends are being tied up. Terra (LUNA), FTX, Genesis, 3AC, and now Tether have all been affected by this situation. Once again, an industry titan is stirring up trouble, and investors risk losing money.
It’s Your Turn Tether (USDT)!
Last week, cryptocurrency influencer Ben Armstrong revealed that Deltec Bank, the purported headquarters of Tether, was holding a significant portion of its reserves in unspecified locations across various social media platforms. This revelation has sparked widespread concern and raised serious questions about the stability of the cryptocurrency market.
The significance of USDT in the cryptocurrency ecosystem cannot be overstated. It has been the most popular stablecoin since the inception of cryptocurrencies and continues to hold a prominent position in the market.
In response to the recent revelations, the leading cryptocurrency exchange in the United States, Coinbase, has issued a cautionary advisory to its investors. Coinbase has recommended that customers convert their Tether (USDT) holdings to USD Coin (USDC) due to concerns about potential market turmoil and the risk of USDT depegging from its peg to the US dollar.
In light of these developments, Coinbase has positioned USD Coin as a safe and stable alternative to USDT, emphasizing its potential to mitigate risks associated with USDT holdings.
USDC Vs. USDT
To further encourage customers to take action, Coinbase will be waiving fees for the conversion of Tether to USD Coin.
“In the current economic climate, stability and trust are paramount for customers. Fiat-backed stablecoins (cryptocurrencies pegged to reserve assets such as the U.S. dollar) offer customers stability and confidence during periods of market volatility.
However, recent events have challenged the stability of certain stablecoins, leading to a flight to safety. We believe that USD Coin (USDC) is a reputable and trustworthy stablecoin, and we are facilitating its conversion to enhance customer convenience. Effective today, we are waiving fees for global retail customers to convert USDT to USDC.”
It is important to note that USD Coin is a stablecoin created by Coinbase and the payments platform Circle in 2018. This initiative raises concerns about the potential for Coinbase to create a false sense of security and promote its own product as a superior alternative. In contrast, Tether (USDT) has been exposed and is currently facing significant scrutiny.
At present, Tether (USDT) holds the third position in the cryptocurrency market with a market capitalization exceeding $65 billion USD. Conversely, USD Coin ranks fifth with a market capitalization surpassing $42 billion.
Coinbase’s strategy appears to be aimed at challenging the dominance of Tether and gaining a significant market share. While they have positioned themselves as a customer-centric organization, this is the same Coinbase that previously sold user data to the highest bidder, leaked thousands of user accounts during a hack, and failed miserably with its algorithmic stablecoin GYEN.
The discourse employed by CZ Binance, Coinbase, and individuals such as Michael Saylor and Ben Armstrong is concerning and contributes to the overwhelming flood of negative information in the cryptocurrency community.
