Here’s Why Tether Will Stop Issuing USDT on EOS and Algorand

On Monday, June 24, Tether, the issuer of the popular stablecoin USDT, announced its decision to stop issuing USDT on the Algorand and EOS blockchain networks. The company cited plans to focus on blockchains with growing communities as the reason for the change.

Although new token issuance has been halted, Tether assured that token redemptions on Algorand and EOS will continue for at least the next 12 months.

USDT is halted due to declining community popularity

In statementTether suggested that the decision to discontinue EOS and Algorand stemmed from a need to prioritize community-driven blockchain support in its USDT efforts. The decision was made after a thorough review and series of evaluations of USDT’s performance and maintainability on various blockchains.

Tether’s statement emphasized the company’s efforts to balance “maintainability, usability, and community interest.” It also suggested that the decision to remove USDT from the blockchain was an evaluation of community interest, security architecture, ease of use, and network sustainability. Tether’s ultimate goal is to appropriately allocate blockchain resources, ensuring efficiency and security while supporting innovation.

After thorough analysis and taking the above into consideration, Tether has decided to cease issuing USDT tokens on Algorand and EOS, with a full transition targeted over the next 12 months.

In the announcement, the stablecoin issuer promised to continue supporting other chains that are more popular with the community and encourage expansion to different protocols.

Tether’s statement also emphasized its commitment to a smooth transition: “We assure our community that this transition will be carried out with the utmost care and with minimal disruption. Our number one priority is to provide a seamless user experience and we are committed to facilitating a smooth transition.”

The company closed by thanking the community for their continued support and emphasizing its mission to build a more “sustainable and democratized financial system” for the planet.

Previous outages of Bitcoin and Kusama

This is not the first time that Tether has stopped issuing tokens on its blockchain. Around August last year, Tether Discontinued The issuance of USDT was launched on three blockchains: Bitcoin, Bitcoin Cash, and Kusama. Ultimately, USDT users on the three chains were given an equal 12-month period to redeem their tokens. This 12-month period ends in August.

Tether’s decision to halt USDT across all three chains last year was prompted by a long period of stagnant user and community growth.

At the time of writing, Tether is available on around 11 chains, including Ethereum, Tron, Avalanche, Kava, Liquid Network, Near, Celo, Polkadot, Solana, Ton, and Tezos.

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