They weren't lying, technically their funds are backed by over 100% dollar value, they just didn't have the funds in a bank. No different than someone's net worth. Like lets say your net worth is 1000 dollars. You have a car thats worth 400 and savings in the bank worth 600. Just because you don't have 1000 dollars on you at all times doesn't mean that your net worth is less than 1000 dollars. It means that all your assets put together equals 1000. That's how value is calculated. Same principle applies to Tether.
In theory, in reality it is most likely backed by shit. They for years lied to have 1:1 USD to USDT, then they finally acknowledged that this was a lie. Fool me once shame on you, fool me twice.....
Sounds like your long, you know Tether's support ETH too, yes? Maybe you should talk up your book instead of down.
BTW Tether is all owned by US Gov agency and they use Tether as a way to launder money, that is why it won't crash, it is US Government backed. Some time ago the US intermingled and they settled on a case for a 6 figure number. Go figure; a billion dollar laundry business settled on a 6 figure number. You think Bitfinex CEO has a place to hide when he is put on a hitlist ? Come on.
The only reason why I am long is because it would not be prudent to miss out completely. I have small position for just in case. I do believe in blockchain tech, cryptos are a totally different story. Call Tether a FUD, let’s see what happens if they ever blow up.
i highly doubt it is owned by US Gov, not impossible of course and would explain why they allowed to exists.