Coinbase recently stated on Twitter that their native coin (USDC) is more secure than its counterpart USDT. They claim that their coin is supported by US regulators and is far more appealing.
USDC and USDT are cryptocurrencies that are pegged or backed by the same amount of fiat currency, USD (U.S. Dollar). USDC and USDT are also referred to as stablecoins. Stablecoins are intended to reduce cryptocurrency volatility. They keep the value stable by minimizing fluctuations. Other than cash, stablecoins can be backed by assets such as gold.
USD stablecoins have a fixed value, allowing traders to enter and exit positions in the volatile cryptocurrency ecosystem. USD stablecoins serve as a means of storing value. USD-backed stablecoins are becoming the norm, just as the US accounts for roughly 90% of all forex trading. The dollar is the world’s reserve currency.
Stablecoins have grown in popularity in recent years. Since 2021, the demand for stablecoins has increased dramatically. The combined market cap of stablecoins surpassed $151 billion in January 2022. This article will go over the two most popular stablecoins, USDT and USDC.