Big changes are coming to Binance as they announced on July 3, 2019, that they will be moving towards Omni-based addresses to ERC-20 based addresses for customer wallet for the use of the Tether stablecoin. This change will be affected on July 4, 2019, and to make it possible there will be a 30-minute downtime that will be planned for USDT withdrawals and deposits and this will begin at 8 a.m. UTC.
This is not a temporary change it as was noted that ethereum ERC-20 based addresses will from now on be the standard and users will no longer have the opportunity to withdraw on Omni-based USDT but they will be able to deposit such tokens by sending tether to Omni-based USDT addresses on the Binance platform. Binance is far from the only major exchange that has enabled support for USDT deposits or withdrawals as Poloniex announced also on July 3, 2019, that they will support ERC-20 based USDT deposits and will allow deposit and withdrawal options for Omni addresses alongside Ethereum and Tron.
One of the reasons that have been an increased interest in Ethereum-based addresses for deposits are withdrawals is because is there faster and cheaper than relying on the Omni network and this has made exchanges particularly interested in them.
Because the business and crypto world is ever-changing, there is a constant need to create products and services that are better than what had previously been offered in a bid to keep up with the changing landscape and also to maintain the customer base. Ethereum-based addresses have shown themselves to be superior to the previous option by allowing cheaper and faster withdrawals which are a major selling point for the average people user.
This is because there is somewhat of a movement within the crypto industry to make the sending and receiving of funds as low as possible in terms of fees which is why huge amounts of money have been shown to be sent with the very low withdraw, deposit and transaction fees. This has given the industry an edge in the traditional financial market and should it hold up even as it moves into a new era of development, it could attract a wider user-base that is not yet familiar with cryptocurrency and blockchain.
Considering that Binance has stated that Ethereum addresses will become standard for them from now on, smaller exchanges will likely follow in their footsteps in the near future as large exchanges such as Binance often set the standard for what is considered acceptable within the crypto industry.
It also shows that support for Tether is strong within the industry despite the many scandals that they have endured in the last few months as an investigation from the New York attorney general's office showed that they had colluded with Bitfinex in order to hide hundreds of millions of dollars in losses by giving Bitfinex access to Tether reserves.
It has also been announced that Bitfinex has paid back $100 million to Tether in a bid to move forward from the scandal