Tether to stop issuing USDT on EOS and Algorand
On Monday, June 24, Tether, the company behind the widely used stablecoin USDT, announced a shift in its strategy, deciding to stop creating USDT tokens on the Algorand and EOS blockchain platforms. The firm expressed its intention to focus on blockchain platforms that boast growing user bases as the driving force behind this move.
Tether confirmed that, despite halting new issuance, the redemption of tokens on both Algorand and EOS would be honored for the upcoming year.
The announcement highlighted Tether's desire to align its USDT distribution efforts with blockchain communities that demonstrate robust engagement and growth. This comes after detailed evaluations of how USDT performed across various blockchain ecosystems, considering aspects such as usability, community engagement, and overall sustainability.
The emphasis was on Tether's dedication to finding a balance between a blockchain's usability, its community's vigor, and secure, sustainable technology. According to Tether, the ultimate goal is to efficiently allocate its resources towards blockchain environments that not only ensure secure and efficient operations but are also at the forefront of innovation.
Following an extensive review of these factors, Tether chose to cease USDT token issuance on Algorand and EOS, aiming for a smooth transition over the forthcoming year.
With this change, Tether reaffirmed its support for other blockchain networks that have garnered stronger community support, promoting diversification across various protocols.
Tether also reassured its users of a streamlined transition process, prioritizing a disturbance-free experience and committed support throughout this shift.
The statement concluded with a note of appreciation for the community's consistent support and a reiteration of Tether's commitment to fostering a sustainable, democratized financial ecosystem worldwide.
This action by Tether is not unprecedented. In August of the previous year, the company ceased USDT issuance on three additional blockchains: Bitcoin, Bitcoin Cash, and Kusama, citing a lack of growth in user base and community engagement. Users on these platforms were given a 12-month window to redeem their tokens, which is set to end in August.
Despite these changes, Tether continues to be actively supported on around 11 blockchain networks, including Ethereum, Tron, Avalanche, Kava, Liquid Network, Near, Celo, Polkadot, Solana, Ton, and Tezos, showcasing its enduring adaptability and widespread acceptance within the digital currency landscape.
