this will really affect the sharp decline in prices, this process is long and just seems to be an outrageous one 
The first thing is this that it is not at possible for this thing to happen, not in any way. In case there comes a time when we see the all the owners of crypto coins withdrawing their coins into paper money, then I think this thing will have very much serious consequences. This will affect the reputation of crypto currency severely and it will result in huge decrease in the market price of coins as well.But they are talking about something different. Remember USDT crysis between tether and american banks. The value of tether was $0.9 at that thim and Bitfinex was still issuing new USDTs without backing it.