These headlines come out every couple of months, nothing ever happens. In fact, odds are that Tether makes a bunch of money every time this happens.
The nature of tail risk is that it seem completely impossible until, one fine day, it manifests explosively. Various other corners of crypto have recently been exposed to this lesson, often at some expense. It doesn't seem unreasonable to expect more damage to the ecosystem before the lesson is well and truly learned.
B) You aren't doing any favors to the reputation of crypto bros by doing such a hard core ostrich impression.
So it will need a big big run until they start hitting their dodgy reserves in metals and loans
That's of course unless the attestation is BS or defrauded which is entirely possible
Stablecoin issuers have basically two jobs. One is to maintain the peg. But the really important job is to convince people that even if the peg temporarily breaks: the money is still there and it won’t be the start of a collapse. Tether does neither of these things. And worse: they have a financial incentive to sweep their customers into periodic panics, so they can buy up Tethers at a discount. Nobody should be anywhere near this ecosystem, and in a world where competing options exist it’s amazing to me that people are.