Coinbase to invest $1.6 billion in MakerDAO’s USDC
Coinbase has made an investment move to buy $1.6 billion of MakerDAO’s USDC. Two scenarios prompt this – a decline in the stock price of Coinbase and the lawsuit against the team behind USDC.
Coinbase, one of the largest centralized crypto exchanges, wants to keep MakerDAO’s USDC on its platform with a 1.6% promised yield. If the proposal pulls through, MakerDAO will share in huge profits.
Currently, MakerDAO is the single largest USDC holder but has faced some challenges in the crypto space. The team behind the development of the stablecoin has blacklisted Ethereum addresses as a fightback against the US Tornado Cash sanctions. Hence, the leadership of MakerDAO is making a case for the DAO to diversify from USDC.
$24 million in revenue for Maker DAO
Greg Di Prisco, ex-head of business development in Maker, explained that Maker had contemplated the move for a while. “Maker holds USDC and makes nothing,” said Greg. Although, in the case of a successful deal, Maker is projected to earn up to $24 million in revenue.
For the Co-founder of MakerDAO, Rune Christensen, Dai should transit its assets from USDC to Ethereum. Rune believes that going with the Coinbase “proposal changes nothing”. It is the same as holding USDC, he continued.
The year 2022 has been a tough one for most crypto organizations and projects. From the decline in crypto trading activities to legal wars and hacks. This has also affected Coinbase with the price of its stock done by 75%.
