USDT VS USDC: Short play

by Ed Khan

“Weak hands” are buying the highs of the market. “Strong hands” are buying the lows of the market.

What assets should you use to buy crypto? The short answer is Stablecoins, of course, which still need to be emitted.

Let's take a look at the emission volumes shown on the CoinMarketCap.

USDT is a "small guy’s" stable coin from Tether, a romantic that dreams of working out of sight of regulators (and if in sight of three lettered monsters, Tether always has a fairy tale about being fully backed by the US dollar).

USDC is a stable coin from Coinbase, a company that has learned to walk toe-to-toe with regulators. Even my friends who officially work for large companies in the UK are buying crypto only through Coinbase. Because it's legal.

Now let's think out loud:

· Tether prints a lot of USDT. Which investors will be using it to buy BTC, ETH, and other crypto currencies, retail or institutional? The answer is obvious. Retail, because the actions of retail investors are not attracting as much of the regulator’s attention.

· Coinbase prints a lot of USDC.  Which investors will be using it, retail or institutional? Of course Institutional, because USDC can be purchased legally, whether you are an individual or a large institution. The only difference is that Institutions have more resources.

The current down trend has put a brakes on the entire growth of the market for 2021. Ok, who is going to pick up at the bottom?

Let's see which of the two stable coins had higher emission over the past 2 months!

USDT emission almost ceased over the last year. USDT has never been emitted in such a limited amounts.

· In the beginning of May (2 months ago) the capitalization of USDT was $ 51 billion, now it is $ 62.6 billion. Which shows the growth of 22%.

· USDC capitalization: $ 11.2 billion in the beginning of May, $ 25.8 billion now. It is a whopping increase of 130%.

In the past 2 months alone, the growth of USDC, beloved by officials and institutions, has 6 times surpassed the growth of USDT.

Nothing has changed over centuries: resources always flow from weak hands to strong ones. And the strong do not hesitate to buy the deeps, while the weak flee in panic.
It always was, is and will be this way. This is the truth.