[berberous]

"Keep in mind that the market clearly values Tether at around $1USD, almost always. That's a good sign that the market as a whole does not think Tether is going to suddenly collapse and take the entire ecosystem into it at any point in time."

This is not the industry to make some sort of "efficient markets" argument. Bitconnect was an obvious ponzi scheme and was valued highly up until it collapsed a few days ago. Same for any number of these coins. And for Internet stocks in 1999. And housing in 2007. People are FOMOing and flooding money into the sector, buying random Alts that a friend told them about, without any clue of what they are. It's not surprising that nobody is thinking critically about Tether.