Coinbase will start a fee of 0.1% for StableCoin USDC conversion to US dollars for a net conversion of over $ 5 million, as the crypto exchange has recently struggled with its revenues.
Beginning August 13, Coinbase will charge the USDC (USDC) fee with US dollars exceeding a net of $ 5 million in a 30-day cycle period, including the net calculated by reducing USDC purchases from USDC sales, according to a notice shared online.
It came after the second-quarter Coinbase results, which was shared last week, missed revenue and revenue, sending its sharing collapse. Stablecoin-related income rose 12% year-to-year to $ 332 million.
It was marked by two consecutive quarters that the company had missed the analyst expectations, as its Q1 revenue was lower than expected.
Coinbase “Running an experiment”
“I don’t love the first one here,” co-founder Ryan Sean Adams said in an x Post Sharing Coinbase updating. “What if it drops to $ 10k. It feels like bank fees again.”
Coinbase’s Senior Product Manager for Stablecoins, Will McComb, Reply In the post, saying that the exchange is experimenting to understand how fees can affect USDC changes.
“We are running an experiment to better understand how the USDC fees affect off-ramping, especially as some competitors charge a higher off-ramp fee back to Fiat,” MCCOMB said.
“Your point about being a key feature is that we hear and we carefully monitor all comments. We are committed to ensure that Coinbase is the best place to use stablecoins.”
Currently, Coinbase is not charge A fee for USDC net conversion to USD up to $ 40 million in a 30-day period. The fees then kicked in 0.05% for net conversions from $ 40 million to $ 100 million and measured to a maximum of 0.2% for conversion over $ 200 million.
Fees to be able to oust Tether with USDC conversions
Some commentators think that the move is likely to cover the costs earned by the USDC management company, the second largest stablecoin by volume.
Others, such as the Crypto Influencer Jordan Fish, who went through “Cobie,” Says The fee can stop the arbitration of users who convert Tether (USDT) to the USDC to off-ramp to dollars for free, reducing USDC supply.
“Tether has an exit fee, which means the cheapest practical route is to replace the USDT with the USDC and then off-ramp to USDC in the USD, which minimizes USDC supply and maintaining USDT supply. If I guess,” he said.
Coinbase CEO Brian Armstrong Sumang -ayon In Fish’s comment, responding to a simple, “Yep.”
Tether charges a fee of 0.1% or $ 1,000, whichever is higher, for converting USDT with a minimum redemption amount of $ 100,000.
Capitalization of the USDT market ranges from 20% from the beginning of the year, while the USDC market capitalization reached 47% at the same time, According to In Defillama.
Bloomberg ETF Analyst James Seyffart Says That Coinbase is likely to have the cost, which the company now passes.
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“It feels like a fee/redemption on fees for an ETF. If they really need to facilitate the creation and redemption of the USDC based on a way that flows from someone that they (probably) are having some kind of cost to do that,” Seyffart said.
“My guess is that they are uploading the cost … and then some,” he added.
I miss you Coinbase’s earnings
New fees come up as Coinbase The estimated income of analysts For the quarter ended June. The company reported a revenue of $ 1.5 billion, as analysts expect income ranges between $ 1.56 billion and $ 1.59 billion.
The company’s stock dropped 8% after it reported the second-quarter income.
In its report for Q1, Coinbase saw Total income collapse of 10%While its net income dropped by 95% due to the unstoppable losses that the company reported on crypto handles.
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