Tether will stop supporting USDT on the EOS and Algorand networks

What’s new? Tether will stop supporting the EOS and Algorand blockchains for its USDT stablecoin, which ranks third in the overall cryptocurrency ranking with a capitalization of $112,9 billion. The company specified that it regularly evaluates the supported networks for their security and usability, as well as the popularity of USDT in their communities.

Press release

What else is known? As of June 24, Tether will stop issuing new USDT on the EOS and Algorand networks, existing coins on these networks can be redeemed (exchanged for collateral) as normal over the next 12 months. Further changes will be announced during this period.

Tether noted that a key factor in deciding whether to invest in specific blockchains is community interest. The company emphasized that it seeks to allocate resources in a way that they can improve security and efficiency while supporting innovation in the crypto industry.

“We will continue to support the protocols and chains that the community finds useful and encourage the community to expand the use cases of USDT on every protocol,” Tether concluded.

Native USDT is currently supported on 16 networks: TRON, Ethereum, Solana, Avalanche, TON, NEAR, Celo, Cosmos, Tezos, Liquid, Polkadot, as well as Kusama, Bitcoin Cash SLP, Omni, EOS, and Algorand.

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The discontinuation of support for Kusama, Bitcoin Cash SLP, and Omni was announced last year. On August 17, the company stopped releasing new coins on these networks due to low user demand. Coin buybacks have also been available for 12 months since then.

At the time, the company noted that if a blockchain shows a decline in activity for an extended period of time, its support for Tether becomes ineffective and insecure.

Against the backdrop of the announcement, the rates of EOS and ALGO native tokens fell by 2,6% and 2,9%, respectively.

At the end of May, the EOS community supported a reduction in the total native token supply of 80%. The change in tokenization is intended to stimulate network activity.

Late last year, blockchain explorer AlgoExplorer announced its closure. The team cited a lack of funding from the non-profit Algo Foundation and an inability to cover operating costs even with the investment of personal funds.