Is $USDT a ponzi scheme ? And if so, how will it affect the crypto economy?

I keep hearing that $USDT has almost no backup when compared to how much is being circulated in the market. I did my research and am very convinced with this theory. In 2020 the NY attorney general decided to investigate into Tether and found that Tether’s claims that it’s a “virtual currency fully backed by dollars” was a lie. Again it turns out it barely had any back up at all.

Even with all of this into, I see some people claiming this theory is all a hoax. But why ? The numbers prove completely otherwise. Is there something more to it that some people don’t see ?

If it doesn’t turn out to be a ponzi scheme and the rug eventually gets pulled, will this also affect other stable coins like $USDC and $USDR ?

What do you think?

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  1. From my understanding it’s not a ponzi scheme but their original claim of 1:1 with USD is false but I haven’t followed more because I didn’t use it. Although I had to use it recently to buy Ergo on Gateio because that was my only option

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