one of the problems with these other stable coins is their lack of liquidity and sometimes adoption by exchanges. since one of the usages of the stable coins is for moving funds between exchanges, using Tether is the only option in most cases since the other exchange may not even have anything else. so eventually everyone sticks with the shady option.
True. The next stablecoin with the highest liquidity next to USDT($6.1b volume) is USDC($30m volume). While USDC's volume is far less than USDT's, it's really not THAT bad. As long as you're trading with USDC:bitcoin and not some altcoin(probably besides ETH), you will probably be fine unless you do a huge transaction.
I think only those funds are freezed which are suspected that they are involved in hack or illegal activity. Not sure, but your article hits the brain hard.
Well, that might just be what they claim. I'm not going to conclude that all these centralized companies that control these centralized stablecoins are evil, but even if they're not, they will have no choice but to obey if the government asks them to do things like freeze funds for whatever reason.