Tether, the issuer of the stablecoin USDT, has announced that it will discontinue support for its Bitcoin Omni Layer, Bitcoin Cash, and Kusama versions. This decision comes as a result of a lack of interest from users, according to a statement released by the Tether team.
The Bitcoin version of Tether, also known as USDT, was one of the first stablecoins ever created. It was released on the Omni Layer in October 2014 and quickly became the highest market cap stablecoin, surpassing earlier stablecoins such as BitUSD and NuBits. However, over time, the Omni Layer faced challenges due to the availability of USDT on other blockchains and the lack of popular tokens. As a result, exchanges started using alternative transport layers, leading to a decline in USDT Omni usage.
Tether has assured its users that redemptions will still be available for at least a year. The company will make further announcements regarding the handling of redemptions after that point. Tether also acknowledged the historical significance of the Omni Layer, stating that it played a crucial role in its early journey and contributed to the crypto landscape.
Despite the discontinuation of the Omni Layer version, Tether has expressed its willingness to reissue it if there is an increase in usage. The company is also working on a new Bitcoin smart contract system called “RGB” and plans to release a Tether version on this system once it is completed.
The decision to discontinue these versions of Tether comes at a time when competition among stablecoins is increasing. PayPal recently launched its stablecoin, PayPal USD (PYUSD), and Binance listed First Digital USD (FDUSD). This competition challenges Tether’s dominance in the stablecoin market.
In conclusion, Tether has decided to discontinue support for its Bitcoin Omni Layer, Bitcoin Cash, and Kusama versions due to a lack of user interest. Redemptions will still be available for a year, and the company will make further announcements regarding the handling of redemptions after that point. Tether acknowledges the historical role of the Omni Layer and remains open to reissuing it if usage increases. The stablecoin market is becoming more competitive, with new players like PayPal and Binance entering the scene.
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