- Tether (USDT) is only 74% backed by fiat.
- Users can find USDC on Binance, Coinbase as well as Poloniex among other exchanges.
The CEO of the leading exchange platform in the US Coinbase has come out to urge crypto users to switch to its issued stablecoin USDC and abandon the troubled Tether (USDT). A tween he published on May 1 says:
“With the confirmation that Tether is not fully collateralized, my hope is that the industry graduates to more trusthworthy stablecoins, including https://www.coinbase.com/usdc
One more piece of reliable infrastructure to help build the open financial system.”
FXStreet recently reported on a case filed by the New York City Attorney General’s office against Bitfinex and Tether for conspiring in covering up a shortfall in the exchange in order to pay for withdrawals. Investigations are in the process while another report says that USDT is only 74% backed by fiat. These reports have led to users finding alternatives and selling their USDT coins.
On the other hand, Coinbase’s USDC stablecoin has been given a 100% bill of health by auditors to mean that is fully backed 1:1 by fiat. Unfortunately, USDC is not on as many exchanges as Tether. Users can still find USDC on Binance, Coinbase as well as Poloniex.
The industry and the financially industry continued to warm up to stablecoins. Stellar recently announced 16 new fiat backed stablecoins that will be released following a partnership with Wirex. Unlike existing stablecoins, Stellar-based stablecoins will be designed for transfer and banking purposes.
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