Very few people hold Tether so it’s not a very helpful warning: most ”USDT” exists within exchanges and is used to transact. The Luna fiasco was a consequence

Very few people hold Tether so it’s not a very helpful warning: most ”USDT” exists within exchanges and is used to transact. The Luna fiasco was a consequence of Luna specifically encouraging people to hold UST, encouraged with unsustainable incentives. That dynamic doesn’t exist in the context of USDT, there’s no benefit to holding USDT. The problem with USDT is that so much of the current cryptocurrency market has been propped up by USDT that probably isn’t backed by any real assets. Tether print $1bn of USDT -> buy $1bn worth of BTC on an exchange that uses USDT (e.g: their own…) -> price goes up and increases the market cap by orders-of-magnitude more than $1bn. If you have exposure to the cryptocurrency market (whether you hold USDT, or BTC or own $COIN stock) and tether blows up, you will very probably be hurt in the fallout. Buying BTC with any USDT held is a false sense of security. If you don’t want to be exposed to the tether blowup contagion, sell everything now into cash-in-your-bank-account (not “cash” on an exchange) and wait.