In case you missed it, Poloniex, one of the major altcoin exchanges,
was acquired by Circle in February . Previously, Circle was focused
primarily on the major coins versus fiat pairings, but since its
acquisition of Poloniex it has had the opportunity to dive into more
tokens, and in September it launched its own stablecoin to compete
with tether (USDT) and the Gemini Dollar (GUSD), which was
launched around the same time. The purpose of “ stablecoins ” is to
help traders denominate their cryptos without creating a crypto-to-fiat
event as well as to have coins that are pegged with some degree of
certainty to the US dollar.
USD Coin has already been listed for use at Coinbase, one of the
largest bitcoin exchanges in the world (owing to the fact that
Coinbase is also a founding member of the token’s development
consortium), and of course, they immediately put it to work on their
new property, Poloniex. Now people wanting to get hold of and trade
USD Coin on Poloniex have more incentive to do so, as Circle has
decided to stimulate usage by eliminating trading fees for the coin on
the Poloniex platform, at least through the end of November.
As CCN reported, Poloniex users are already trading two versions of
bitcoin cash for USD Coin. Somewhat ironically, they are also offering
to exchange USDC against USDT.
For the present, this means that Poloniex users have two stablecoin
options. It is unclear whether Poloniex will list USDT indefinitely,
but it has been on the exchange almost since its inception as Poloniex
transformed from a major altcoin exchange to a major everything
exchange.
At the time of writing, a minor arbitrage opportunity existed between
USDC, wherein one could purchase a USDC for $1.00 and buy around
$1.01 worth of USDT. Tether is supposed to be exchangeable directly
for $1.00 via Bitfinex, so the divergent trading, done in mass
quantities, is an opportunity for savvy traders with deep pockets to
profit.
According to Circle, over $130 million in USDC are now in
circulation, and this number should expand as usage of the token
increases. Trading volume, though, has yet to match its market cap, as
daily turnover is just $3.4 million.
was acquired by Circle in February . Previously, Circle was focused
primarily on the major coins versus fiat pairings, but since its
acquisition of Poloniex it has had the opportunity to dive into more
tokens, and in September it launched its own stablecoin to compete
with tether (USDT) and the Gemini Dollar (GUSD), which was
launched around the same time. The purpose of “ stablecoins ” is to
help traders denominate their cryptos without creating a crypto-to-fiat
event as well as to have coins that are pegged with some degree of
certainty to the US dollar.
USD Coin has already been listed for use at Coinbase, one of the
largest bitcoin exchanges in the world (owing to the fact that
Coinbase is also a founding member of the token’s development
consortium), and of course, they immediately put it to work on their
new property, Poloniex. Now people wanting to get hold of and trade
USD Coin on Poloniex have more incentive to do so, as Circle has
decided to stimulate usage by eliminating trading fees for the coin on
the Poloniex platform, at least through the end of November.
As CCN reported, Poloniex users are already trading two versions of
bitcoin cash for USD Coin. Somewhat ironically, they are also offering
to exchange USDC against USDT.
For the present, this means that Poloniex users have two stablecoin
options. It is unclear whether Poloniex will list USDT indefinitely,
but it has been on the exchange almost since its inception as Poloniex
transformed from a major altcoin exchange to a major everything
exchange.
At the time of writing, a minor arbitrage opportunity existed between
USDC, wherein one could purchase a USDC for $1.00 and buy around
$1.01 worth of USDT. Tether is supposed to be exchangeable directly
for $1.00 via Bitfinex, so the divergent trading, done in mass
quantities, is an opportunity for savvy traders with deep pockets to
profit.
According to Circle, over $130 million in USDC are now in
circulation, and this number should expand as usage of the token
increases. Trading volume, though, has yet to match its market cap, as
daily turnover is just $3.4 million.
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