- Tether has recently announced its decision to stop issuing USDT on the Algorand and EOS blockchains.
- This move is aimed at enhancing the company’s blockchain ecosystem by reallocating resources to more impactful platforms.
- The company will continue supporting redemptions on these blockchains for the next year, with potential additional changes to follow.
Tether halts USDT issuance on Algorand and EOS blockchains to optimize resource allocation and support community-driven development.
Tether Stops Issuing USDT on Algorand and EOS
In a significant move, Tether announced that it has ceased minting its USDT stablecoin on the Algorand and EOS blockchains. This decision is effective immediately and aims to streamline Tether’s blockchain ecosystem by placing greater emphasis on platforms that offer enhanced security and community-driven support.
Reasons Behind the Decision
According to Tether, the decision follows a comprehensive assessment of the network security, usability, and sustainability of the blockchains in question. The company aims to optimize resource allocation to platforms that not only improve security and efficiency but also foster innovation within the cryptosphere. For the next 12 months, Tether will support the redemption of USDT on these blockchains, suggesting that further changes might be implemented in the future based on additional evaluations.
Previous Blockchain Withdrawals
In August 2023, Tether had already ceased issuing USDT on other blockchains, including Kusama, Bitcoin Cash’s Simple Ledger Protocol (SLP), and the Omni Layer Protocol. The first Tether tokens were introduced on Bitcoin through Omni in October 2014, marking the beginning of Tether’s extensive journey in the blockchain industry. This recent decision underscores Tether’s adaptive strategy as it continues to evolve with the changing landscape of blockchain technologies.
Exploring New Blockchain Integrations
While Tether is withdrawing support from Algorand and EOS, it remains committed to expanding its reach by integrating with new blockchain networks. For instance, in April 2024, Tether launched USDT on The Open Network (TON), minting approximately $500 million worth of stablecoins on this platform. This new issuance constitutes around 0.44% of the total circulating supply of USDT, showcasing Tether’s proactive efforts to diversify its blockchain integrations.
Conclusion
In conclusion, Tether’s decision to halt USDT issuance on Algorand and EOS reflects a calculated move to enhance resource allocation and security within its blockchain ecosystem. The company’s strategy of continuous adaptation and exploration of new blockchain networks signifies its commitment to fostering innovation and staying resilient in the ever-evolving cryptocurrency landscape. As Tether continuously evaluates its blockchain integrations, stakeholders can expect more strategic adjustments in the future.
