[Chabsff]

Each Tether, on paper, represents a single US dollar locked into the crypto ecosystem.

It's kind of like a company's war chest bank account: no matter what happens, the value of the asset is worth at least that much.

But it's a little more pernicious than that. Tethers are typically emmited conveniently at times where the price of crypto is going down, propping the value up. If the current value of BTC exists because of artificial upwards pressure, it's likely that the value should settle back down to where it would have been if not for said pressure when released from it.

[lazide]

FYI - Tether stopped even pretending it actually represented that anymore, and NYAG dig up plenty of evidence that it was never actually even close to representing real money. They didn’t even have bank accounts back in ‘17!