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Tether, the company that manages the issuance of USDT, the largest stablecoin of the crypto market, has announced a shift in its focus on providing support to blockchains based on community interest. The company announced it would stop minting USDT tokens in two blockchains, Eos and Algorand, starting June 24.
Tether Announces Change to Community-Driven Blockchain Support, Stops Minting USDT on Eos and Algorand
Tether, one of the largest companies in the cryptocurrency space, has made relevant changes in its approach to supporting its products in different blockchains. According to a press release issued on Monday, the company announced a strategic transition to “prioritize community-driven blockchain support.”
In this regard, Tether communicated that community interest was one of the key issues when taking USDT to a specific blockchain, evaluating several elements like the network’s security architecture to ensure the sustainability of USDT in the chosen blockchain. In this regard, Tether stated:
Our goal is to allocate resources where they can best enhance security and efficiency while continuing to support innovation across the crypto landscape.
Under this justification, Tether announced it would stop supporting USDT in two chains where it was previously issued: Eos and Algorand. As part of this process, it reported it would stop minting the stablecoin in this chain on June 24. In addition, redemptions of USDT issued on top of these chains will be available for 12 months following this announcement, with further changes possible.
According to Tether’s transparency page, a little over 100 million USDT are currently issued on top of these two chains. This is less than 0.1% of the total USDT present in the market, given the USDT’s capitalization of over 100 billion.
Nonetheless, Tether stressed that this transition would be executed meticulously and with minimal disruption to these communities. While Tether stopped supporting these chains, it has recently started supporting others like TON, where nearly 500 million USDT have been issued since April.
What do you think about Tether’s announcement on dropping support for Eos and Algorand-issued USDT? Tell us in the comments section below.