The post Tether to Shut Down CNH₮ Stablecoin as Demand Drops appeared first on Coinpedia Fintech News
Tether, the company behind the world’s most widely used stablecoin USDT, has announced that it will no longer support CNH₮, its offshore Chinese yuan stablecoin.
The company has already stopped the minting of new CNH₮ tokens and will completely stop redemption support within the next year.
No New CNH₮ Tokens, Redemption Deadline Set
On 20th Feb, Tether announced that it had halted the creation of new CNH₮ tokens. However, users who still possess CNH₮ tokens will get a chance to redeem them before the final deadline next year. The company has directed its users to redeem their tokens as soon as possible.
The CNH₮ stablecoin was launched to allow crypto traders to have access to the offshore value of the Chinese yuan. Although the stablecoin had a lot of potential, it never gained as much popularity as the USDT stablecoin.
Over time, trading activity and overall usage of CNH₮ remained relatively low.
Low Activity Forced Tether to Reconsider Its Strategy
Stablecoins are always in need of technical support and maintenance. Over time, CNH₮ failed to achieve enough user activity, and maintaining the token became less practical.
Tether stated that it continuously reviews its product offerings and adjusts according to real-world market usage. CNH₮ simply did not reach the level needed to remain part of its long-term plans.
Therefore, Tether has chosen to focus on markets that have stronger adoption and clearer growth prospects. As the stablecoin sector has become highly competitive, only the most widely accepted and trusted assets continue to grow.
Tether Focuses on Strengthening USDT and Core Infrastructure
Tether is also committed to developing its stablecoin ecosystem. USDT is still the market leader, with huge trading volumes on a daily basis.
Rather than focusing on creating products with low adoption, Tether will now concentrate on improving its stablecoin infrastructure and creating products that will suit its global community.
The move to shut down CNH₮ stablecoin shows how fast the stablecoin market is growing. Stablecoins that do not get enough adoption are eventually phased out, while leaders such as USDT continue to strengthen their base.
Source: https://coinpedia.org/news/tether-to-shut-down-cnh%E2%82%AE-stablecoin-as-demand-drops/
