Tether Discontinues Bitcoin Stablecoin Citing Lack of Usage

Introduction

Tether, the issuer of the popular USDT stablecoin, has announced that it is discontinuing its Bitcoin-backed stablecoin, citing a lack of usage. The stablecoin, which was launched in 2019, allowed users to hold Bitcoin in a stablecoin form, which was useful for those who wanted to avoid the volatility of the cryptocurrency market.

Tether’s Decision

In a statement released on Monday, Tether said that the decision to discontinue the stablecoin was made after an evaluation of its usage. “Despite several initiatives to increase usage, the adoption of the BTCt token has remained minimal,” the company said. “As such, Tether has decided to discontinue the BTCt token.”

The BTCt token, which was launched in 2019, was a Bitcoin-backed stablecoin that was pegged to the value of Bitcoin. It was designed to provide users with a way to hold Bitcoin in a stablecoin form, without having to worry about the volatility of the cryptocurrency market.

Impact on the Market

The discontinuation of the BTCt token is unlikely to have a significant impact on the cryptocurrency market, as it was not widely used. However, it does highlight the difficulty that stablecoin issuers face in trying to create stablecoins that are backed by cryptocurrencies.

Related:Why Is Bitcoin Price Down Today?

Conclusion

In conclusion, Tether’s decision to discontinue its Bitcoin-backed stablecoin is a reminder of the challenges that stablecoin issuers face in trying to create stablecoins that are backed by cryptocurrencies. While Bitcoin-backed stablecoins may have some benefits, such as allowing users to hold Bitcoin in a stablecoin form, they have not yet gained widespread adoption.

Official Accounts

Official Telegram Channel: https://t.me/CryptoInsidersOnline
Official Instagram Account: https://www.instagram.com/cryptoinsiders_news
Official Twitter Account: https://twitter.com/CryptoinsiderHK
?
spot_img
spot_imgspot_img

Related Articles

Understanding ERC-223 Tokens: A Safer Approach to Gas Fees and Enhanced Security

Dive into the world of ERC-223 tokens, offering enhanced security and efficient gas fee management in blockchain transactions. Learn how they safeguard against loss in unsupported...

What is ERC-6551: the Future of NFTs

Discover ERC-6551, a transformative standard in the NFT landscape, enhancing asset ownership, social identity, and enabling autonomous actions...

The Power of Trustless Smart Contracts and Optimism Layer Two: Insights from Perpetual Protocol Co-founder

Explore the transformative power of trustless smart contracts, DeFi innovations, and the Arbitrage Vault. Learn about Optimism Layer Two and Perpetual Protocol's...
You have not selected any currencies to display