If the accusations are true, then Tether (USDT) is bound to lose its peg sooner or later. It's like a "ticking time bomb". Once it detonates, crypto market prices will plunge like never before. A recovery is certain, but it will take a lot longer than expected. It will be a great buying opportunity for whales, but a huge loss for investors.

You can never trust something that isn't backed by the government. Private companies are known to fail over time. But governments always manage to manipulate their currencies for their own convenience. I believe stablecoins will end up being replaced by CBDCs, as governments force their use. It will be a short ride for Tether, USD Coin, and the likes. Ultimately, what matters is decentralization. As long as we have truly-decentralized cryptocurrencies by our side, nothing else matters.