I must agree if Tether goes down, this will be a big problem for all cryptos because almost all stablecoins are in Tether.
A sudden Tether crash will lead to executions of orders with 20%-50% in all major exchanges, which will lead to mass disruption. Some people will buy coins 20%-50% cheaper, but the consequences will be harmful.
How are most of the stablecoins are in Tether? Do people need to use Tether to buy stablecoins? I know I can just use BTC or ETH to buy stablecoins without involving Tether.
Can someone tell me, mechanically, how can Tether manipulate the price of Bitcoin?
I do agree that if there are any major bad news happened to any of the bigger coins or exchanges, the whole crypto market will be affected in the short term.
Also, how does Tether survive? Is it centralized and managed by a small group of people?