Major Shift: Tether Halts USD₮ Minting On EOS And Algorand, Future Changes Await

Tether decided to terminate support for USDT stablecoin on EOS & Algorand blockchain networks.

EOS and Algorand are leading blockchain networks known for their scalability and efficiency in processing transactions. EOS uses delegated proof of stake (DPoS) to support fast and scalable decentralised applications (dApps). Algorand, on the other hand, employs Pure Proof of Stake (PPoS) to ensure rapid transaction finality and scalability, particularly focusing on decentralised finance (DeFi) applications.

On 24 June 2024, Tether emphasised the importance of community interest in deciding which blockchains to integrate USD₮.

The USDT issuer firm stated that careful evaluation of a network’s security architecture is crucial to ensure safety, usability, and sustainability. Tether’s objective is to allocate resources where they can enhance security and efficiency while fostering innovation in the crypto sector.

After thorough consideration, Tether announced the discontinuation of support for the EOS and Algorand implementations.

Tether firm ensured ongoing support for protocols and chains that benefit the community, encouraging the expansion of USD₮ use cases across all platforms. 

As per the announcement, Tether will cease minting USD₮ on EOS and Algorand from today (24 June 2024). However, they will continue to redeem USD₮ on these blockchains for the next 12 months. Further decisions regarding these implementations will be evaluated and announced at a later date.

As of June 22, EOS-based Tether in circulation amounted to $75.5 million, which accounts for approximately 0.06% of the total circulating USDT, valued at nearly $113 billion, according to Tether transparency data.

On the other hand, Algorand-based USDT also has a significantly smaller share of the total USDT circulation, approximately $17 million or 0.01% of the total circulating USDT. This limited adoption was a key factor in Tether’s decision that USDT was not sufficiently utilised on these networks.

This latest bad news failed to impact the trade price of the EOS coin, the price chart shows.

Also similar kind of calm behaviour is seen with the Algo coin but there is a huge chance that the impact will be visible after some hours.

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