Leading stablecoin Tether recently added its token on Ethereum sidechain to reduce the load on its network. The USD-pegged stablecoin has released its token on the Plasma-based OMG Network.
Tether’s gas burning
Tether issues its USDT token on the Ethereum network and is the biggest gas users on the network. On Monday, the company announced that it will be launching additional tokens on the sidechain to reduce network load and boost performance.
Bitfinex CEO Paolo Ardoino said that this will be a cost-effective method for Tether to adopt. It will relieve some pressure on the root chain network and also bring several performance improvements. The OMG Network, formerly known as OmiseGo, is a layer-two Plasma solution to help the Ethereum blockchain scale. OMG network has also launched its beta main net on Monday, the same day that Tether added its token to the network. The USDT tokens available on the new network will first be available to the Bitfinex traders. This will help them react faster to trading opportunities on the exchange. Bitfinex and Tether are sister companies.
Tether’s demand fails to falter
Tether is one of the largest tokens on the market today and its demand hasn’t faltered despite its association with many controversies. The token has been named in Bitcoin manipulation scams and there have been issues with Bitfinex as well. The controversy was regarding a $800 million loss that Bitfinex tried to cover up. However, no other stablecoin has been able to match the dominance of Tether to date.
The stablecoin is pegged 1:1 with the USD and is heavily criticized for its opaque operations. As demand increases, Tether is pumping up more and more stablecoins in the market. The company, which is a subsidiary of iFinex, has also launched a gold-backed stablecoin called Tether Gold. The company claims to have kept gold equivalent to the value of the stablecoin in a Switzerland-based safe vault.
Tether is already available on Ethereum, Algorand, Tron, Omni, and EOS.