Coinbase Performs Fee-Free Swap of USDT to USDC

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Coinbase, an American cryptocurrency exchange, and publicly traded company now allow its users to convert their Tether (USDT) to USDC stablecoins with no fee attached.

Specifically, Coinbase users can now perform fee-free swaps of their Tether (USDT) to USD Coin (USDC) which the company co-founded. Consequently, this has led to a verbal battle between Tether and many media outlets.

“Now more than ever, stability and trust are of the utmost importance to customers,” Coinbase said, adding that its USDC is “unique in that it’s 100% backed by cash and short-dated U.S. treasuries held in U.S. regulated financial institutions.” Coinbase claims that the USDC is always equivalent to the US dollar 1:1.

Tether Received Hypocrisy Attack

Many perceived the move to be a missile targeted at USDT as part of the ‘stablecoin wars’. This war may not be favourable for Tether according to Wall Street Journal because the company behind the stablecoin “may not have enough liquid assets to pay redemptions in a crisis.” WSJ came to this conclusion after a loaning trend was noticed In Tether. 

Instead of selling Tether for hard currency upfront, the company has been lending the stablecoin to customers. Although, it claimed that it was lending only to ‘eligible customers and requires that borrowers post lots of “extremely liquid” collateral, which could be sold for dollars if borrowers default.’

Without wasting time, Tether responded to WSJ in a blog post titled WSJ & CO: The Hypocrisy of Mainstream Media, Asleep at the Wheel of Information. 

“Critics and media outlets have spent years criticizing, investigating, and warning against the purported ‘ever impending’ failure of Tether, yet they were completely asleep at the wheel as a hugely significant portion of the crypto industry imploded due to irresponsible leverage, outright fraud, and regulatory arbitrage. Does this add to their credibility? Does this prove their understanding of the crypto market?” the post outlined.

Trying to find reasons why so much negative energy is diverted to Tether, the blog post identified many embattled crypto firms which these critics have ignored. The likes of now-bankrupt FTX, its sister trading firm Alameda, bankrupt BlockFi, indebted Genesis, Celsius, Three Arrows Capital (3AC), and Terra were mentioned.

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