Recent news from stablecoin issuer Tether, as published on Coindesk, has created quite a stir in the crypto community. Tether, which has been operating using Omni, a Bitcoin layer, for its USDT transfers since 2014 announced that it will discontinue support for Omni, along with Kusama (KSM) and Bitcoin Cash (BCH) SLP implementations. Omni, essentially a software layer built on the Bitcoin blockchain, was designed to enhance the features of Bitcoin by providing smart contract capabilities.
There has been an underlying issue with the use of Omni. Despite its technological advancements, Omni has faced a dwindling interest over the years. The primary reason appears to be the lack of popular tokens and the availability of USDT on other blockchains. This availability led a majority of exchanges to lean towards alternative transport layers, leading to a drop in USDT usage on Bitcoin using the Omni layer.
Tether boasts a significant hold on the market as the largest stablecoin with a market cap of $82 billion and tokens issued on the Omni layer amount to $240 million worth. Kusama and Bitcoin Cash implementations hold $1.4 million and $980,000 respectively. The decision to pull the plug on these layers signifies a change in strategy by Tether.
From August 17, the issuance of USDT on Omni, Kusama, and Bitcoin Cash will cease. However, redemptions will continue for the next 12 months. Despite all these transitions, it’s noteworthy that the price of Tether has seen only a minor slump of 0.12% over the past 24 hours and continues to trade at around $0.998.
This decisive departure from established layers puts forth a major question about the future of Tether and its implications for the users. While some view this as an optimistic step towards embracing newer technologies, others see it as a risky move. As Tether navigates through these strategic decisions, the crypto world watches on, eager to witness the unfolding scenario in the unpredictable world of cryptocurrencies.