Popular US crypto exchange Coinbase has just announced it has decided to cut by almost 90% the reward it gives to its users for storing the cryptocurrency on the platform.
Starting yesterday, the users of the trading platform, who had been receiving a passive profit of 1.25% per year on their USDC funds stored on the exchange, will earn just 0.15%.
The exchange has not explained why it has made this decision. However, other industry players have taken similar steps.
The platform started in October 2019 to offer its US users the possibility to earn money simply by storing their USDCs on the exchange. These rewards accumulate daily and are distributed to users on a monthly basis.
The USDC is supported by CENTRE, a consortium co-founded by Coinbase and Circle. It is the second largest stablecoin in the market with over 7% market share. However, the largest stablecoin is Tether (USDT), which has a market share of 85%.
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