Tether Reverses USDT Freeze on Five Legacy Blockchains!

In a big reversal, Tether has halted the process that would see it freeze the USDT on five separate blockchains- Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Subsequently, following community backlash to an emergency halt of redemptions and freezing of accounts that had been planned for September 1st, Tether was so incensed with community reaction, that they didn’t even end up following through with the proposed freeze, but they reclassified those networks as ”unsupported”.

Unsupported Status Explained

Old chain USDT tokens can still be moved between wallets via the modified procedure, but Tether the company will not honor new issuances or payments upon any of these old versions of USDT.” So users of those tokens simply have to realize they’re not actually being held by Tether, and that Tether isn’t going to help convert them into fiat or other live chains.

In earlier July, Tether had reported that it was preparing to put an end to support for some blockchains in a strategic simplification. CEO Paolo Ardoino said at the time that the company would have to put the resources at the disposal of blockchains with more transactions and that its decision would be consistent with trends in developer and community interest. In any case, a negative response, particularly from the developer and user community on Algorand and EOS, made the difference.

Implications for Token Holders and Developers

It is important to note that with this changed setup, if a chain on which your USDT is held is impacted, you will still be able to access your funds as well as perform transfers. Concisely, on those chains, Tether will never redeem or reissue again. To swap your USDT, though, you must transfer it to a chain that remains supported, such as Ethereum or Solana. To developers this translates to the fact that your existing applications will still operate but that you just need to be ready to only develop future projects in ecosystems in which Tether is actively running.

Strategic Shift Toward Future Networks

Following this decision, the development plan for Tether continues to be clearly defined: phasing out low-volume chains with a history of use and focusing more on those with a high demand, such as Ethereum, Tron, and new Layer-2 chains like RGB Bitcoin and Lightning Network. Tether has made this move as a step towards the facilitation of future connectivity, scalability, and ecosystem relevance.

To Conclude

Because of community feedback, Tether decided to turn back on the freeze it had planned for USDT on five legacy chains and, instead, to send them an “unsupported” status. No tokens can be issued or redeemed in these locations, but holders are still allowed to move their tokens. It is a gentler way of letting the users have access to the service, but at the same time, it indicates a change in the company’s strategy. All users should move their tokens to the actively working chains to have full functionality, and all developers are required to adjust their future work accordingly. Simply put, the Tether flexible solution demonstrates that the firm is hearing the anxieties of people. Simultaneously it is advancing work on the infrastructure of stablecoins.