>If Tether is not legitimate, wouldn't Tether holders sell their Tether for BTC and other crypto assets which would increase the prices of crypto assets? It wo

>If Tether is not legitimate, wouldn't Tether holders sell their Tether for BTC and other crypto assets which would increase the prices of crypto assets? It would increase the price of BTC in tether. But the tether to dollar peg would fail. All the BTC stored in tether based exchanges would move to fiat based exhanges. If people decide to hold onto BTC because it is safer, it might cause a price increase for a short time. But people who held tether, would likely be interested in selling BTC for real cash. The whole point of tether was to avoid the price instability of other coins. Plus, if tether really has printed a billion dollars or more of fake dollars, the disappearnce of that will cause the price to drop over the long term. And don't discount pure panic. Market cap is a stupid measurement for currencies. Two billion of fake money could distort the "market cap" by hundreds of billions. You also have to wonder if shady exchanges just decide they are better off stealing all the coins now. Because without tether, a lot of them won't survive.