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0 pointsxur175y ago0 comments

Because way more exchanges offer USDT trading. USDC / DAI are both fairly new, and aren't offered as trading pairs nearly as frequently.

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whimsicalism5y ago

Coinbase offers DAI, plus you can exchange DAI for any ERC20 token on a dex.

xur17OP5y ago

Right, and coinbase offers USDC as well. The problem is the long tail of exchanges overseas that only offer USDT.

rglullis5y ago

But why should you care about these fringe exchanges when (a) you know they are not trustworthy and (b) there are decentralized alternatives where you can trade pretty much any token you'd like to hold?

If the problem that these exchanges only offer $LOCAL_CURRENCY <-> USDT as on-ramp, what's stopping you to:

   1. make the on-ramp via USDT
   2. buy ETH
   3. withdraw to your own wallet
   4. Trade on Uniswap/Curve/1inch/Loopring/Stakenet to anything you want; (Wrapped) BTC, USDC, DAI, any ERC20...

It's not that complicated, it eliminates your risk of holding USDT, these shady exchanges can still operate (at their own risk, not the users), it makes it super easy to identify exchanges with liquidity problems (the ones that get any excuse to not let you withdraw or make the fee way to high will surely indicate an issue with their liquidity) and - most importantly - reduces the amount of USDT in circulation.

What I am missing?

rglullis5y ago

Still, they do exist now. And again, if an exchange only offers USDT as on-ramp that should be a massive signal against its trustworthiness.

xur17OP5y ago

I somewhat agree, but it's also a chicken and the egg problem - everyone uses USDT as the primary pair because everyone wants it, and everyone wants it because that's what every other exchange offers. Exchanges can offer another stablecoin, but it's likely to have very little volume.

j / k navigate · click thread line to collapse

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whimsicalism5y ago

Coinbase offers DAI, plus you can exchange DAI for any ERC20 token on a dex.

xur17OP5y ago

Right, and coinbase offers USDC as well. The problem is the long tail of exchanges overseas that only offer USDT.

rglullis5y ago

If the problem that these exchanges only offer $LOCAL_CURRENCY <-> USDT as on-ramp, what's stopping you to:

   1. make the on-ramp via USDT
   2. buy ETH
   3. withdraw to your own wallet
   4. Trade on Uniswap/Curve/1inch/Loopring/Stakenet to anything you want; (Wrapped) BTC, USDC, DAI, any ERC20...

What I am missing?

rglullis5y ago

Still, they do exist now. And again, if an exchange only offers USDT as on-ramp that should be a massive signal against its trustworthiness.

xur17OP5y ago

j / k navigate · click thread line to collapse