Upbit's announcement to cease its USDT lending program raises significant concerns among users, prompting a reevaluation of investment strategies.
End of USDT Lending Service
Upbit has officially announced that it will end its USDT lending service, with new applications ceasing on July 28 and a complete shutdown expected by August 27. Users must repay their loans and withdraw funds by this deadline.
USDT Lending Popularity
USDT lending attracted users by providing a way to earn income on assets while avoiding cryptocurrency volatility. Users could earn interest by lending their Tether, making this service accessible and appealing.
Reasons for Upbit's Decision
While Upbit has not provided specific reasons, possibilities include increased regulatory scrutiny in South Korea and heightened oversight of lending services. The global market's situation following significant collapses may have also influenced this decision. The exchange may be aiming to minimize risk and focus on other areas.
The closure of Upbit’s USDT lending program signals the need for users to reconsider their investment strategies and anticipates similar actions from other exchanges.
