Tether stops issuing USDT on EOS and Algorand! What's the reason behind this?

This site (120Btc.coM): Tether, the leading stablecoin issuer USDT, issued an announcement yesterday (24th) announcing that it will carry out strategic transformation and prioritize issuance on the blockchain with the community as the main driving force. USDT: At Tether, we are firmly committed to maintaining a strong and innovative blockchainecosystem for USDT and all other tokens we issue. To fulfill this commitment, we will continually evaluate the current transport layer and strive to strike a balance between maintainability, usability, and community benefit.

Tether stops issuance of USDT on EOS and Algorand

At the same time, Tether announced in the announcement that after comprehensive consideration, they will suspend the issuance of USDT on the public chain EOS and Algorand, and continue to support protocols or public chains that the community finds useful : Starting today (June 24, 2024), Tether will stop minting USDT on EOS and Algorand. In the next 12 months, Tether will be exchanged for USDT on EOS and Algorand as usual. If there are other changes, we will announce them in time after evaluation.

Why were EOS and Algorand abandoned by Tether?

According to Tether’s official website, the blockchains currently issued by Tether for USDT include Tron (Tron), Ethereum, Solana, Ton, Avalanche, Near... and many other public chains. Among them, Tron has the largest circulation, with a total circulation of more than 59.8 billion U.S. dollars. Ethereum, the second largest cryptocurrency, also has a circulation of nearly 52 billion U.S. dollars. The popular public chainSolana, which has been revived from the dead, has about 1.89 billion U.S. dollars. Circulation Volume Even Ton, which was only supported by Tether this year, currently has a circulation volume of US$580 million. On the other hand, EOS and Algorand, as established public chains, only have a circulation volume of US$85.2 million and US$17.2 million respectively. It can be seen that It seems that it is not attractive enough to users, which may be one of the reasons why it was abandoned by Tether.

On the other hand, some people in the currency circle have speculated that according to Tether’s wording in the announcement, “We will carefully evaluate the securityarchitecture of the network to ensure the security, availability and longevity of the selected blockchain.” Sustainability. Our goal is to allocate resources where they can maximize security and efficiency." Tether's move may also imply that EOS and Algorand are not decentralized enough, which may lead to Tether in the future Exposed to potential regulatory risks. However, this speculation has not been confirmed by Tether, and there is a high probability that they will not explain it in the future. However, we can continue to observe whether Tether will continue to cancel support for more public chains or add other public chains.

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