The US-based Poloniex Exchange has announced its support for the USD Tether launched recently as a TRC20 token along with the existing USDT-Omni that is supported on the Exchange platform.
USD-Tether is a stable coin which is pegged to the US Dollar with a 1:1 ratio. Tether provides the back-up of the funds released as a cryptocurrency on the blockchain.
Misha Lederman, Co-founder at IAmDecentralized.org and a Tron supporter tweeted about the new USD Tether:
✅USDT is the most widely used stablecoin – pegged 1:1 to the US dollar ✅Previously available as a token on top of Bitcoin & Ethereum – now also available on TRON ✅TRON plans a 20 million USDT-TRON giveaway for 100 days.
Poloniex Will Support Two Versions of USD Tether
Tether is the firm that provides for the conversion of value to digital cash in the form of a cryptocurrency but pegged to an asset. USD Tether is the most widely used stablecoin which is backed 100% by the reserves at Tether.
Moreover, while the reserves are the same USDT is running on more than one blockchain platform; USDT-Bitcoin, Ethereum, Omni and Tron are all running a USD Tether.
Nevertheless, the USDTs on different chains are not interchangeable, i.e. while the markets for the chains can be the same, the wallet addresses of these chains are different. Furthermore, the smart contracts on the Tron network will only be able to access USDT-Tron and it applies respectively to OMNI and Ethereum as well.
Earlier the USDT offered on the Poloniex Exchange was designed on the OMNI chain. Now, the Exchange has decided to support both the versions of the chain by using the fact that they share a common reserve and hence are apparently the ‘same cryptocurrency’.
Nevertheless, the Exchange confirmed that it will have no effect on the USDT markets on Poloniex. Also, the users need to take no action to convert or transfer their existing USDT-OMNI tokens as they will continue to trade as well.
Since it is comparatively easier to adopt the new USDT-Tron along with USD-Omni and USDT-Eth, do you think other Exchanges will also add support soon?
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com