Stablecoin giant Tether has remained silent on whether it will follow its competitor Circle in abandoning the Tron network. This comes after Circle abruptly stopped minting its USDC stablecoin on Tron and announced a gradual withdrawal, citing concerns about “transparency and safety.”
When questioned about Circle’s move and their own plans, Tether offered a vague response. They emphasized their multi-blockchain presence and their ability to freeze transactions when needed. However, they avoided directly confirming or denying any potential withdrawal from Tron.
Tether currently reigns supreme in the stablecoin world, boasting a market cap of $97.7 billion compared to Circle’s USDC with $28 billion. Notably, over half of Tether’s issued tokens (51.8 billion) reside on the Tron network, highlighting its significance for the company.
Circle’s departure from Tron was fueled by worries about security and transparency, echoing a UN report in January. The report raised concerns about illicit activities like fraud and money laundering using USDT on Tron, citing user-friendliness, anonymity, and low fees.
While acknowledging the UN report, Tether dismissed its claims, defending its platform’s traceability and collaboration with law enforcement. They point to over $300 million in USDT used for crime being frozen recently, showcasing their efforts to combat misuse.
Despite Tether’s silence, Tron’s reputation faces additional scrutiny. Ethics watchdog groups have linked the network to alleged criminal activity, and the US SEC even filed a lawsuit against its founder for unregistered securities offerings and market manipulation.
While Circle has chosen to sever ties with Tron, Tether’s next move remains mysterious. Investors wait with bated breath to see if Tether will prioritize transparency and safety like Circle or continue its presence on the controversial network. The future of USDT on Tron hangs in the balance.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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