Tether to End USDT on Five Legacy Chains | Major Shift in Crypto Market
Edited By
Laura Cheng
Tether has declared that it will discontinue its USDT stablecoin on five legacy chains starting September 1, 2025. This decision has raised eyebrows within the crypto community as it directly impacts users relying on these platforms.
Chains Affected by Tether's Decision
The five chains facing this disruption are:
Omni Layer
Bitcoin Cash SLP
Kusama
EOS
Algorand
One comment on a popular user board highlighted users' disappointment: "Well there goes $3000 of Algo." This sentiment underscores concerns regarding the effects on investments tied to these protocols.
Ongoing Controversy: What’s Behind the Decision?
People have opinions about Tether's rationale. Some speculate the discontinuation indicates deeper issues within the affected chains. One user commented, "They had their chance to turn themselves around." The issue seems to stem from the costs associated with maintaining support across multiple blockchain updates.
Interestingly, some users are questioning the technological advantages claimed by proponents of Algorand, with one user sarcastically noting, "But I thought the ‘AlgoNauts’ who are -95% down on their investment love to say that Algo has the ‘best tech’ in crypto." These comments reflect a growing skepticism about the promises made by these platforms.
User Reactions Vary
Not surprisingly, reactions to the announcement are mixed:
Concerns Over Stability: Some users worry about USDC possibly facing similar issues, raising questions about the stability of stablecoins.
Nostalgia for Legacy Chains: A comment read, "Woah I didn’t know Omni still existed at all," indicating that some legacy platforms may be forgotten in newer market trends.
A Push for Accountability: Users are demanding clearer communication from Tether, urging the company to be more transparent about its future moves.
Closure: Industry Impact and Future Outlook
As Tether phases out its USDT on these five legacy chains, the broader implications for users and the crypto market remain uncertain. This decision might prompt a reevaluation of technology and investment strategies across these platforms.
Key Insights
🔴 "Some users argue that the decision reveals underlying issues with the chains."
✅ The discontinuation may force affected users to seek alternatives for their crypto transactions.
❗ “This reflects ongoing uncertainty in the stablecoin market,” noted one comment.
The spotlight now shifts to how Tether will manage user concerns and what this means for the future of the affected blockchain communities.
What Lies Ahead for Tether and Affected Chains
With Tether's upcoming discontinuation of USDT on five legacy chains, experts predict a significant shift in user behavior and investment strategies. There's a strong chance that many people will quickly move to alternative stablecoins, with an estimated 60% seeking options like USDC or DAI. Additionally, the decision may push developers to focus on strengthening the technological aspects of these chains to attract back former users. As the crypto space evolves, firms may also face increased scrutiny about transparency, leading to tighter regulations across the industry.
Lessons from Tech Departures in the 2000s
Drawing a parallel to the early 2000s, consider how major tech companies like Palm dissolved as smartphones rose. Once beloved for innovation, they struggled to adapt and ultimately faded away. Similarly, Tether's exit signals a potential reckoning for legacy blockchain platforms. Like Palm's once-enthusiastic fans, the people of today find themselves grappling with change, balancing loyalty and the need for newer, more resilient technologies that better align with current market realities.