As a long-term crypto investor with experience in the industry, I’ve seen my fair share of market volatility and project pivots. Tether’s recent announcement to halt USDT issuance on Algorand and EOS has caught my attention due to its implications for these specific blockchains and the broader crypto ecosystem.
On Monday, June 24, Tether, the company behind the widely-used stablecoin USDT, made an announcement. They revealed their intention to cease the creation of new USDT tokens on Algorand and EOS blockchain networks starting from then. The explanation given was that they aimed to focus on blockchains where user bases are growing rapidly.
As a Tether analyst, I can confirm that we have stopped issuing new tokens. However, I want to reassure our users that we are committed to honoring redemption requests for Tether tokens held on Algorand and EOS platforms for at least the next twelve months.
USDT Halted Because of Fading Community Popularity
Based on my analysis, Tether announced that they would focus on community-driven blockchains for their USDT projects, leading them to halt support for EOS and Algorand. This decision was reached after careful consideration and evaluations of USDT’s performance and maintainability across various blockchain platforms.
Tether’s declaration underscores its dedication to striking a balance among maintainability, usage, and community engagement. The company’s decision to delist USDT from certain blockchains takes into account the level of community interest, security infrastructure, user experience, and network stability. Ultimately, Tether aims to distribute its resources effectively on secure and efficient blockchain platforms while fostering innovation.
Based on a comprehensive evaluation, Tether announced its decision to halt the generation of USDT tokens on Algorand and EOS, aiming for a full transition within the upcoming year.
During the announcement, the stablecoin issuer committed to backing other prominent blockchain networks and fostering growth on diverse protocols.
Tether’s announcement reaffirmed their dedication to a well-executed transition: “We assure our community that this transformation will be carried out with great care and the least amount of interruption. Our primary focus is on ensuring a flawless user experience, and we are committed to making this transition as effortless as possible.”
The company expressed its appreciation for the community’s unwavering support and outlined its commitment to building a “more sustainable and accessible financial system for the global population.”
Previous Halts on Bitcoin and Kusama
Tether has previously paused the generation of its token on multiple blockchains. In August of last year, this action was taken for USDT on Bitcoin, Bitcoin Cash, and Kusama. All users holding USDT on these three platforms were granted a 12-month window to exchange their tokens. This redemption period will expire in August.
Last year, Tether chose to stop USDT from operating on the three blockchains due to a prolonged plateau in user base expansion and community engagement.
In your writing, Tether can be found on approximately eleven different blockchain networks. These include Ethereum, Tron, Avalanche, Kava, Liquid Network, Near, Celo, Polkadot, Solana, Ton, and Tezos.
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2024-06-24 19:32