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.
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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.
