Tether stops supporting EOS and Algorand, what’s the reason behind it?

Author: Zhangjoy, dynamic zone dynamic trend

BlockTempo Tether, the leading stablecoin issuer of USDT, issued an announcement yesterday announcing that it will carry out strategic transformation and prioritize the issuance of USDT on a blockchain with the community as the main driving force:

In Tether , we are firmly committed to maintaining a strong and innovative blockchain ecosystem 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 issuing USDT on Tether 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 US dollars. Ethereum, the second largest cryptocurrency, also has a circulation of nearly 52 billion US dollars. Solana, a popular public chain that has been revived from the dead, has about 1.89 billion. US dollar circulation

Even Ton, which was supported by Tether only this year, currently has a circulation of US$580 million

On the other hand, EOS and Algorand, as established public chains, only have US$85.2 million and US$17.2 million respectively. The circulation volume does seem to be insufficiently attractive 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 security architecture of the network to ensure the security, availability and sustainability of the selected blockchain. Our goal is to allocate resources to places that can

maximize

security and efficiency.” Tether’s move may also imply that EOS and Algorand are not decentralized high enough

, which may cause Tether to face difficulties in the future. 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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