Tether isn't what cryptocurrencies was/is supposed to be. It's as if you took Herbalife as a valuable/honest/model player in the dietary supplement market...
Billions of Tether were printed, and then used to buy Bitcoin. That means Bitcoin's current price is supported (to some degree) by Tether.
Whether its catastrophic or not... well... time will tell. But its certainly a worry of some people.
Are they not? Shakes can be a decent way to lose weight. Seems to be that people are willing to pay a premium for the "community". But IMHO saying their stuff is overpriced is like saying beer in a bar is overpriced because you can buy a beer for one dollar in the supermarket. Yes, it is correct. In some way.
http://brontecapital.blogspot.com/2015/06/herbalife-very-lon...
[I don't have any position in Herbalife and I enjoy my shakes Harbalife free]
How much of Herbalife’s success is from selling a competitive product will determine its survival in the long run.
Still its MLM sales methods are questionable and cost a lot of people money.
However, Herbalife's success comes from their incredibly shady and destructive pyramid scheme that preys on individuals and tricks them into acquiring debt in exchange for becoming "distributors" of Herbalife products. According to the FTC [1], "it's virtually impossible to make money selling Herbalife products".
I recommend the documentary Betting on Zero [2] for more insight into Herbalife, as well as the fascinating story of Bill Ackman's failed attempt at shorting their stock at a huge scale.
[1] https://www.ftc.gov/news-events/blogs/business-blog/2016/07/...
http://brontecapital.blogspot.com/2015/06/herbalife-very-lon...