This is exaggerated FUD that contains misinformation. Why on earth would the reserves to guarantee 1 USD peg to be held in bitcoin? That's just stupid. These reserves are mainly in USD and only a small amount is available in BTC.
Jordan specifically said their *goal* is 0% reserves, which means they are really backing it with NSR's ability to inflate to buy back NBT
The main trading pair is NBT/USD. They hold USD to maintain the peg. Bitcoin can go to zero, it doesn't change the amount of dollars available for maintaining the peg of 1 NBT per 1 USD.
Right now they do, but again Jordan said their plan is to have NO reserves at all.
There are some reserves right now. My point is that because reserves equate to counterparty risk and are not necessarily useful in backing NuBits, we are aiming for 0% reserves, not 100%.
So the only mechanism there to support nubit price if it starts falling is to NBT to NSR burn (equivalent to inflating NSR to buy back NBT), which is in the process of being implemented.