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I think there is a possibility of things going the other way around of what grand parent is expecting. Once USDT implodes there will be a bank run to sell those

I think there is a possibility of things going the other way around of what grand parent is expecting. Once USDT implodes there will be a bank run to sell those tokens for fiat, bitcoin, Ethereum or even other stable coins. That until exchanges cease accepting those or doing trades at all. Some might become insolvent. In the end people who leave their funds at exchanges will be the one with the short end of the stick.

JumpCrisscross 5y ago
> Some might become insolvent. Why should an exchange go broke because something they trade falls in value?
- phyalow 5y ago
  Because the leverage extended to customers is greater than the value of collateral the exchange holds. It is certainly possible if Tether dropped to 0.8 or something this would cause even automated liquidation and margining engines to fail then causing a systemic shock across all posted liquidity on the venue.
- user-the-name 5y ago
  It wouldn't, if they handled funds correctly. (They don't.)