Why the Tether announces end of support for EOS and Algorand

According to the latest document from Tether, the world's largest stablecoin issuer, it is currently adjusting its blockchain strategy.
Tether’s strategic transformation demonstrates its commitment to maintaining security and efficiency while responding to the evolving needs of the blockchain community.

Currently, Tether price is $0.999566 with a 24-hour trading volume of $53,829,062,141.
Tether is up slightly by 0.01% in the past 24 hours. Its market cap is $112,892,696,322 and its circulating supply is 112,941,691,563 USDT coins.

Tether announces end of support for EOS and Algorand

Tether has announced that it will cease minting new USDT tokens on the EOS and Algorand networks starting June 24, 2024.
However, it is worth noting that for the next 12 months, Tether will continue to be exchanged for USD on EOS and Algorand as usual. Further changes may be reviewed and announced at that time.

Tether will focus on community-driven blockchain

Tether’s strategic transformation will proactively evaluate and adapt its transport layers to ensure they meet high standards of maintainability and availability. By reallocating resources from EOS and Algorand to other blockchains, Tether aims to make the ecosystem more resilient and innovative.

Reasons Tether ends support for EOS and Algorand

EOS and Algorand are among 17 blockchains that facilitate Tether transactions, including well-known networks such as Ethereum, Tron, Solana and the Open Network (TON).

EOS and Algorand have low circulation

Tether’s transparency page recently showed:

• The largest issuance on Tron, with a total issuance of over $59.8 billion
• Ton, which is supported by Tether this year, has a significant increase in issuance and is currently approximately US$580 million.
• Ethereum, the second largest cryptocurrency, also has a circulation of nearly $52 billion.
• The popular public chain Solana, which has been revived from the dead, has a circulation of approximately US$1.89 billion.
• On the other hand, EOS and Algorand, as established public chains, only have a circulation of US$85.2 million and US$17.2 million respectively. It seems that they are not attractive enough to users, which may be one of the reasons why they were abandoned by Tether.
  

EOS and Algorand are not secure

According to Tether’s wording in the announcement, “We will carefully evaluate the network’s security architecture to ensure the security, availability, and sustainability of the selected blockchain. Our goal is to allocate resources to maximize A place of safety and efficiency".

Tether's move may also imply that EOS and Algorand are not decentralized enough, which may cause Tether to face potential regulatory risks in the future.

It is still unknown whether Tether will continue to cancel other public chains in the future. You can continue to pay attention to Coinlive's follow-up event reports.