- Tether cuts USDT support on certain chains, shifting focus to community-driven networks.
- Cardano supporters woo Tether, highlighting the chain’s community–focused approach.
- Cardano’s stablecoins fall short of USDT and USDC’s qualities.
The Cardano community remains vocal in its quest for a major fiat-backed stablecoin. Yet despite the long-running, persistent calls, no significant progress has been made in bringing a major stablecoin to the Cardano blockchain, leaving a notable gap in its ecosystem.
Tether announced it was withdrawing USDT support from the Algorand and EOS chains on June 24, citing a shift towards “community-driven” blockchains. The message reignited efforts within the Cardano community to bring a major fiat-backed stablecoin to the chain, arguing that their blockchain epitomizes the community-driven ethos Tether claims to prioritize.
Cardano Community State Their Case
When Tether announced its decision to withdraw USDT support for Algorand and EOS, citing a commitment to ‘community interest’ chains, Cardano enthusiasts seized the opportunity. They flooded Tether’s announcement with appeals, emphasizing Cardano’s community-centric nature to persuade Tether to add USDT to their blockchain.
Sponsored
Prominent X influencer ADA Whale led the charge, stating, “Our community is deep and strong,” while highlighting Cardano’s community-driven Proof-of-Stake model and fair coin distribution as key examples of the blockchain’s alignment with Tether’s stated priorities.
ADA Whale further emphasized the upcoming Chang hard fork, which will introduce on-chain governance and community treasury control, declaring it will make Cardano “100% ours” and free from centralized control.
Cardano DRep (delegated representative) “Cardano YOD₳” echoed ADA Whale’s sentiments, particularly regarding the Chang hard fork. Cardano YOD₳ asserted, “I do not know any other that would be close to what Cardano is going to become in the context of on-chain governance,” underscoring the community’s belief in Cardano’s unique position among rival blockchain projects.
However, this push for a major stablecoin on Cardano isn’t without opposition. Input Output CEO Charles Hoskinson previously stated that major stablecoin providers like Tether and Circle must fully comply with U.S. government policies, potentially exposing users to risks such as censorship and asset confiscation, practices that run counter to Cardano’s decentralization ethos.
As a vibrant and diverse ecosystem, Cardano already offers a range of stablecoins, including the dollar-backed USDM.
Cardano Stablecoins Lacking
Cardano features several stablecoins, including Djed, MyUSD, iUSD, and USDM. The latter, launched in March, marked a significant milestone as the chain’s first U.S. dollar-backed stablecoin. This development was initially met with enthusiasm, with many in the Cardano community heralding it as the dawn of a new era for the blockchain.
However, USDM has so far failed to live up to expectations. Its absence from major crypto tracking sites like CoinMarketCap and its empty CoinGecko page raises questions about its impact and adoption.
On-chain data further underscores these concerns, revealing a mere 3.2 million USDM tokens in circulation three months post-launch. This pales in comparison to USDT on Ethereum, which boasts a supply of 112.8 billion tokens.
The appeal of major stablecoins lies in their global acceptance and recognition, multiple trading pairs across various blockchains, and accessibility on centralized exchanges. Cardano’s native stablecoins, including USDM, currently lack these crucial qualities.
On the Flipside
- Tether would be well aware of Cardano‘s community–focused operations.
- LUNA Classic advocates also commented on Tether’s announcement, making a case for USDT to join the LUNA Classic chain.
Why This Matters
While Cardano purists tout decentralization principles to argue against bringing USDT or USDC to Cardano, the reality is that commercial blockchain success requires compromise.
Hoskinson reiterates the importance of governance to long-term success:
Cardano Founder: “Ethereum Wouldn’t Exist” if Not for This
Toncoin overtakes Dogecoin in the CoinMarketCap crypto ranking:
Toncoin Surpasses Dogecoin Amid Crypto Market Plunge
