Why Tether Is Pulling USDT from EOS and Algorand

Key Takeaways:

• Tether is discontinuing USDT token issuance on EOS and Algorand to focus on blockchains with stronger community engagement and growth prospects.
• USDT redemption on EOS and Algorand will remain unaffected for at least the next year, ensuring continuity for existing users.
• This strategic move by Tether aims to optimize resources and enhance stability across preferred blockchain networks.

On Monday, June 24th, Tether, the issuer of the widely used stablecoin USDT, announced a significant decision to cease the issuance of USDT tokens on the Algorand and EOS blockchain networks. This move comes as Tether aims to focus its efforts on blockchains with growing and active communities. 

While new token creation will no longer occur on Algorand and EOS, Tether assured users that the redemption of USDT tokens on these networks will continue uninterrupted for at least the next year. 

The decision was reached after careful evaluation of each blockchain's performance, sustainability, and the broader community support driving USDT adoption.

Tether Focuses on Key Blockchain Networks for USDT Growth

Tether emphasized its commitment to maintaining a balance between the sustainability, usage, and community interest of USDT across various blockchain platforms. The company underscored that the choice to withdraw USDT from specific blockchains was part of a strategic effort to optimize resource allocation. 

This decision was made following extensive analysis aimed at enhancing efficiency and security on preferred blockchain networks while fostering continued innovation in the stablecoin ecosystem.

In its announcement, Tether highlighted its strategic vision to concentrate resources on blockchain networks that exhibit robust community engagement and technical reliability. 

The phased withdrawal of USDT from Algorand and EOS over the next year is part of Tether's broader strategy to support and expand its presence on platforms that resonate most with the global cryptocurrency community. 

The company expressed gratitude to its users for their ongoing support and reaffirmed its commitment to advancing a sustainable and inclusive financial system worldwide.

Changes in Tether's Token Issuance Strategy

Last year, around August, Tether made a similar move by discontinuing the issuance of its USDT token on three prominent blockchains; Bitcoin, Bitcoin Cash, and Kusama. 

Like the recent decision regarding Algorand and EOS, Tether provided users with a 12-month window to redeem their USDT tokens on these platforms. This transitional period is set to conclude in August. 

The decision to halt USDT issuance on these blockchains last year was driven by stagnant growth in user adoption and community engagement.

As of now, Tether remains available on approximately 11 blockchain networks, including Ethereum, Tron, Avalanche, Kava, Liquid Network, Near, Celo, Polkadot, Solana, Ton, and Tezos. 

These platforms continue to support the issuance and utilization of USDT tokens, reflecting Tether's strategy to prioritize blockchains with active communities and robust ecosystem growth.

FAQs:

• Why is Tether withdrawing USDT from EOS and Algorand? Tether cites a strategic decision to concentrate resources on blockchain networks that demonstrate higher community engagement and growth potential.
• Will USDT redemption be affected on EOS and Algorand? No, Tether assures users that USDT redemption will continue uninterrupted on EOS and Algorand for at least the next year.
• Which blockchain networks will Tether prioritize going forward? Tether plans to focus on approximately 11 blockchain platforms, including Ethereum, Tron, and Solana, known for their active communities and robust ecosystem growth.

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