Dear CoolWallet Community,
Since some of our CoolWallet users have asked about this, we’d like to clarify three points of interest regarding Omni’s USDT, also known as Tether.
First off, please note that when you send USDT funds out of your CoolWallet, your transaction fees are collected in a tiny amount of Bitcoin (BTC), not USDT.
In addition, we also currently enforce 2 limitations in accordance with Omni regulation, namely limiting CoolWallet users to 3 USDT addresses and 10 USDT transaction history entries per address, for a total of 30 transactions.
If you’d like to know why, please read on. Let’s look at what Tether and Omni is next.
What is Tether (USDT)?
As you may know, Tether (USDT) is a stablecoin that exists on the Bitcoin and Ethereum blockchains by using the Omni Layer and ERC20 protocols respectively ( and now also on Tron as TRC-20 tokens)
What is Omni Layer?
Omni Layer is a Bitcoin-based blockchain protocol that enables complex financial functions in a cryptocurrency and the vast majority of issued Tether uses it.
Omni has restrictions in place to prevent system abuse and exploits. Two of these also impact CoolWallet users.
Why Do I Need To Pay BTC When Conducting An USDT Transaction?
As previously mentioned, Tether’s Omni layer is built on the Bitcoin network. Therefore, all mining transaction fees and dust are collected in BTC.
What is Bitcoin Dust?
In an Omni USDT transaction or balance, dust refers to a miniscule BTC amount that’s used to bridge the sending and receiving addresses before the USDT is transferred. It usually amounts to less than a hundred satoshi and for all purposes has no value.
In general, cryptocurrency dust is considered a nuisance that also has some privacy implications. If you want to learn more, read this.
What is a Satoshi?
Satoshi refers to the smallest measurable units of Bitcoin and is named after Bitcoin’s mysterious creator.
Bitcoin can be divided into 100 million Satoshis, meaning that one Satoshi, or Sat as it is also called, is equal to 0.00000001 Bitcoin. Any Bitcoin amount or balance smaller than a few hundred satoshis is essentially dust. You can work out Satoshi vs Bitcoin on this site:
Which Omni limitations impact the CoolWallet S?
- The CoolWallet S can only allow up to 3 Omni USDT addresses
- Omni USDT addresses only show 10 historical entries (transaction)
Why am I limited to 3 Omni USDT addresses and 10 transaction history entries?
Omni’s API advises that all users are requested to practice proper coding techniques to prevent abuse. In cases of repeated abuse of the system, it can lead to a permanent ban.
To avoid this, we currently limit Omni USDT owners to a maximum of 3 addresses along with 10 transaction history entries per address to ensure we adhere to their requirements.
Need to know more? Click on this link:
OmniAPI Limitation: https://api.omniexplorer.info/
You can obtain more transaction details of the specific address by selecting the transaction history entry in question and clicking the Full Information button.
Will CoolWallet bypass these restrictions?
Possibly. We are reviewing the option of hosting our own server in order to bypass this limitation and will announce it as soon as we make a final decision about hosting our own server.
We hope you find the above information useful. Want to know more? Please visit our Help Center for any remaining questions.
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