Why did Tether halt USDT issuance on the EOS and Algorand chains?
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Why did Tether halt USDT issuance on the EOS and Algorand chains?
Insufficient appeal to users might be one reason why it was abandoned by Tether.
Navigating Web3 tides with focused insightsBy Zhang Joy, BlockTempo
Tether, the issuer of the leading stablecoin USDT, announced yesterday (24th) a strategic shift to prioritize issuing USDT on blockchain networks primarily driven by community activity:
At Tether, we remain firmly committed to maintaining a robust and innovative blockchain ecosystem for USDT and all other tokens we issue. To fulfill this commitment, we continuously evaluate our current transport layers, striving to balance maintainability, usability, and community interests.
Tether Halts USDT Issuance on EOS and Algorand
In the announcement, Tether also revealed that after comprehensive evaluation, it will suspend issuing USDT on the public blockchains EOS and Algorand, while continuing support for protocols or chains deemed valuable by the community:
Effective today (June 24, 2024), Tether will cease minting USDT on EOS and Algorand.
Over the next 12 months, Tether will continue normal USDT redemption operations on EOS and Algorand. Any further changes will be promptly communicated following assessment.
Why Did Tether Drop EOS and Algorand?
According to Tether’s official website, USDT is currently issued across multiple blockchains including Tron, Ethereum, Solana, Ton, Avalanche, Near, and others.
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Tron leads in issuance volume, with over $59.8 billion in total supply
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Ethereum, the second-largest cryptocurrency network, has nearly $52 billion in USDT issuance
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Solana, a revived popular blockchain, holds around $1.89 billion in issuance
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Even Ton, which only received Tether support this year, already has $580 million in issuance
In contrast, despite being established blockchains, EOS and Algorand have only $85.2 million and $17.2 million in USDT issuance respectively—appearing significantly less attractive to users, which may explain why Tether decided to discontinue support.
Additionally, some in the crypto community speculate that based on Tether's statement—"We carefully assess the security architecture of each network to ensure the safety, availability, and sustainability of selected blockchains. Our goal is to allocate resources where security and efficiency can be maximized"—this move may imply concerns about insufficient decentralization on EOS and Algorand, potentially exposing Tether to future regulatory risks.
However, this speculation remains unconfirmed by Tether, and they likely won't provide further clarification in the future. Nonetheless, it will be worth watching whether Tether continues to drop support for additional blockchains or adds new ones.
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