With cryptocurrencies taking a rest towards the end of the year, the unfolding battle between major stablecoins across the globe does not show any signs of ending soon.
Poloniex, notably acquired by Boston-based Circle in February, has made another major move in a bid to edge out other competitors, and they don’t care if they get scared.
The Stable Wars
Exchanges like Binance and Coinbase have firmly positioned themselves at the peak of the crypto exchange market for the brief time that they have existed, and it will surely take more than enough to usurp the exchange giants from their seats. Circle is another fast-rising cryptocurrency finance company wielding the utility of the blockchain technology to leverage digital assets and to engage particularly new investors on the crypto scene. The crypto finance company since acquiring Poloniex exchange at the beginning of the year has set itself to pushing the exchange into significance amidst ever-increasing competition.
Thus, the exchange announced earlier this year its new stablecoin: the USD coin, created primarily as a competition to already established stables such as Tether’s USDT and the Gemini Dollar. Poloniex, prior to its purchase by Circle had only concerned itself with the exchange of major digital currencies and fiat pairings, but their goals have since shifted and magnified itself. The launch of the USD coin was only the beginning.
Throw in a Free Coin
‘Buy one, get one free,’ must be the simplest but most genius business tactic invented since the 20th century. Circle in a bid to gain more market volume of course only had to turn to a similar tactic.
To compete with the like of USDT and Gemini Dollar, Poloniex gleefully announced its decision to scrap out trading fees for every trade related to the USD Coin. As of November 8th, this year, USDC trading fees became absolutely free.
Binance would swiftly follow with its own positive static: the same way kings like Bitcoin can easily make changes that smaller altcoins make and still achieve better results. With the already attractive option of paying trading fees with the native BNB token on Binance, the exchange— which is currently the largest by volume— does not seem eager to rest on its competitive edge. Following Circle’s move, it also announced the inclusion of the growing stable, Paxos Standard on its listing, and revealed its intention to create a combined stable coin market.
While Circle’s free USDC trading fee window was supposed to expire by the end of the November, the company has announced its decision to extend its free window through the month of December likewise. The company would have made about $500,000 alone in trading fees according to its email blast, but the war hasn’t ended, has it?
So, bring it on.