At the end of the day tether will still exists and remain at $1 even if it is a fractional reserve rather than 1:1 . Heck the money in our banks are fractional reserves too but that does not stop everyone from mass panicking and withdrawing.
Tether acts like bank indeed but where is their banking license?
Tether is not a bank and they have no right to print USD because they ain't the FED neither.
It is a major scam no matter how you look at it.
Why do you think USDT is a scam when almost all exchanges use this coin. I think you're wrong here because USDT is the only stable coin that I feel the best and has a great deal of support from the top exchanges. In addition, if you want to switch to fiat, up to 80% of users will use USDT to transfer because this is the easiest way to avoid volatility of this market.