What happened?
Following a surprise update, Tether, the company behind the USDT stablecoin, has decided to no longer freeze transfers on five blockchains, including Bitcoin Cash. This reversal from Tether’s initial announcement to phase out USDT support by September 1 preserves the long-term utility of Bitcoin Cash and alleviates concerns of liquidity loss.
Who does this affect?
This development primarily impacts users of USDT on Bitcoin Cash, as well as on Omni Layer, Kusama, EOS, and Algorand. While these users can still transfer USDT within their blockchain and to other chains, Tether will not be supporting new issuance or on-chain redemptions.
Why does this matter?
Preserving operations on the Bitcoin Cash blockchain helps maintain its market value and might also affect the market stability of the stablecoin USDT. A more stable Bitcoin Cash ecosystem could also lead to a more positive outlook for Bitcoin Cash price predictions and potentially impact the broader cryptocurrency market.