Any pegged coin in an unregulated, volatile marketplace is a shitcoin.
One of the major criticisms of the crypto market is that there are so many people trying to create money out of thin air.
Trying to peg a coin to a real life asset to when there are no laws or insurance in place to guarantee that liquidity when you want to cash out is very scammy.
In America, ever since the great depression there have been regulations in place to protect your money and to also protect those who lend.
What protection do you have with tether or any other ones?
Aslo, get real here, you seriously think a company like tether and all it's shady dealings has the means to liquidate 2.5 billion dollars?
And those that try to have a crypto be backed by a real life asset like precious metals.
It is way better to just buy the actual bond for the precious metal instead of some fake "certificate" coin.
You are right! All these coins are risky. However if you need to sell your BTC for a short period the cheapest way is to buy USDT instead of fiat. As I understand this is one interesting function of such coins. However, another question, as there is only 1 poor function which is not so popular (imho because majority prefer to hold) how did tether get 2.5bln cap? Insane