Tether, the entity responsible for the largest stablecoin in the crypto market, USDT, has unveiled plans for a major strategic shift, ceasing support for USDT tokens minted on the Omni protocol, Kusama, and the Bitcoin Cash Simple Ledger Protocol (SLP).
In a recent announcement, the company elaborated on its decision, citing the need to preserve a robust ecosystem for USDT. They’ve evaluated various factors, including the security measures, customer support, regulatory compliance, and oversight needed to ensure the continued safety, usability, and sustainability of USDT across these particular networks.
According to Tether, the decision was also influenced by the diminished community interest in these projects, admitting that supporting platforms with little traction could risk the overall security and efficient oversight.
Starting from August 17, users will no longer have the ability to mint USDT on these chains, though the company will continue to support token redemptions on these networks for a full year, and independent exchange channels will remain operational.
Tether also expressed particular concern over the situation with the Omni protocol, recognizing that its prominence had waned since it served as the initial transport layer for USDT back in 2014. Newer transport layers favored by various cryptocurrency exchanges have contributed to Omni’s decline.
Despite this, Tether hasn’t entirely given up on Omni, suggesting that increased engagement with Omni’s decentralized exchange and token issuance protocol could lead them to reconsider their position on USDT issuance via Omni on Bitcoin.
Tether reinforced its commitment to Bitcoin, celebrating it as the most secure and decentralized blockchain ever created. In line with this belief, the company is working on RGB, a smart contract system to function atop Bitcoin and the Lightning Network. They have also announced the forthcoming launch of USDT on this platform, promising a new super-powerful and scalable layer for Bitcoin.
The news of Tether’s withdrawal of support for USDT issuance on these chains has sparked discussions and varying opinions in the cryptocurrency community. Feel free to share your thoughts in the comments section below.
Frequently Asked Questions (FAQs) about fokus keyword: Tether
What chains are affected by Tether’s decision to withdraw support for USDT?
Tether is withdrawing support for USDT on the Omni protocol, Kusama, and the Bitcoin Cash Simple Ledger Protocol (SLP).
When will users no longer be able to mint USDT on these chains?
Starting from August 17, users will no longer have the ability to mint USDT on these chains.
Will Tether continue to support redemptions of tokens on these networks?
Yes, Tether will continue to support redemptions of tokens issued on these networks for a full year, and independent exchange channels will remain operational.
What is Tether’s stance on the Omni protocol?
Tether expressed concern over Omni’s decline but has not entirely given up on it. They suggest that increased engagement with Omni’s features could lead them to reconsider their position.
Yes, Tether is developing RGB, a smart contract system that will function on top of Bitcoin and the Lightning Network. They have also announced the forthcoming launch of USDT on this platform.
Why did Tether decide to cease support for USDT on these chains?
Tether cited efficiency and security concerns, as well as the level of community interest, as reasons for discontinuing support for USDT on the Omni protocol, Kusama, and Bitcoin Cash’s SLP.