- Tether, the world’s largest stablecoin issuer, has announced its withdrawal from two altcoin networks.
- The developer behind USDT, Tether, will now only support protocols that the USDT community finds useful.
- The decision impacts the EOS and Algorand networks, effective from June 24, 2023.
Tether is streamlining its operations by focusing on more widely-used blockchain networks, ensuring optimal utility for its users.
Tether Withdraws Support from EOS and Algorand Networks
In a strategic move to enhance the efficiency of its operations, Tether announced that it will cease support for EOS and Algorand networks starting from June 24, 2023. The company’s focus will now shift towards supporting protocols and blockchains that are most beneficial to the USDT community.
The Impact on EOS and Algorand Users
Current users of USDT on the EOS and Algorand networks will need to redeem their holdings within the next 12 months. Tether assures its community that this transition will be managed with utmost precision to avoid significant disruptions. The company’s statement emphasizes a commitment to ensuring a smooth process for users affected by this change.
Tether’s Optimized Network Strategy
With the withdrawal from EOS and Algorand, Tether’s operational networks will now include Avalanche, Celo, Kava, Ethereum, Liquid Network, NEAR, Polkadot, Solana, Tezos, TON, and Tron. The majority of USDT’s market value, which totals approximately $112.75 billion, is predominantly distributed across the Tron and Ethereum networks. This strategic focus on selected networks will likely enhance the utility and security of USDT.
Historical Context and Future Plans
This isn’t the first time Tether has streamlined its network support. Last year, the company discontinued USDT services on the Bitcoin, Kusama, and Bitcoin Cash networks. These decisions reflect Tether’s continuous efforts to ensure its operations align with the needs and preferences of its user base, promoting broader adoption and use-case scenarios across the most active blockchain ecosystems.
Conclusion
Tether’s decision to withdraw support from the EOS and Algorand networks marks a significant shift in its operational strategy, aiming to consolidate efforts on more impactful protocols. Users should prepare for this transition by planning their redemptions within the stipulated time. Moving forward, Tether’s streamlined focus is expected to enhance the stability and availability of USDT across its supported networks, ensuring it remains a dominant force in the stablecoin market.
