Tether’s Collapse Would Be Chaotic, Not Cataclysmic | David Z. Morris

The question facing tether users, now as ever, is just how reliable that redemption process is likely to be – or, put even more simply, whether Tether’s reserves actually add up to the $61 billion worth of tokens in circulation. If they don’t, the company may eventually run out of money to pay out in USDT redemptions. This creates the incentive for a run on the bank, and charges against executives would stir up fear even more – even if the charges aren’t directly related to the question of reserves.