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Because way more exchanges offer USDT trading. USDC / DAI are both fairly new, and aren't offered as trading pairs nearly as frequently.
by xur17 6y ago
Because way more exchanges offer USDT trading. USDC / DAI are both fairly new, and aren't offered as trading pairs nearly as frequently.
- rglullis 6y agoStill, they do exist now. And again, if an exchange only offers USDT as on-ramp that should be a massive signal against its trustworthiness.
- xur17 6y agoI 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.
- whimsicalism 6y agoCoinbase offers DAI, plus you can exchange DAI for any ERC20 token on a dex.
- xur17 6y agoRight, and coinbase offers USDC as well. The problem is the long tail of exchanges overseas that only offer USDT.
- rglullis 6y agoBut 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?