[phire]

All that Tether really need is for enough people to believe that they probably have enough collateral to handle any potential bank run. Those people will buy up discounted tether and prevent the bank run from even happening.

Though, the mess with TerraUSD has clearly knocked a bunch of people's confidence in Tether. I wouldn't be entirely surprised to see it crash.

[mrep]

Isn't that what the banks said before their first bank run and then the government had to step in to back peoples deposits to ease their worries. The government isn't backing these deposits.