The problem lies in the opacity of the Tether emission process. Because of centralized nature of its release, members of the crypto community are doubting if Tether has a reserve fund. Over the years, different government agencies have launched investigations into the Tether organization. The story of Tether continues and is unlikely to be resolved in the near future. However, people still use it as it is one of the most convenient stable coin so they have to trust it.
the last sentence is where the problem is. if people don't attempt to redeem their coins, the sum of Tether they see remains a number. indeed stablecoin is a need for faster crypto trading, but we actually need one that we know what it's fully backed by. on the other hand, looks like people haven't learned a lesson about the "cloud mining" scam, which i thought people would be smarter to invest a big sum.
i kinda have a conspiracy here: governments may already know that Tether isn't as solvent as a regular bank and may become insolvent in no time, but didn't carry out any actions to keep the panic low as long as they can due to its excessive influence.