What is your opinion on this?
Is Tether cancer we have to get rid of for bitcoin and the crypto market to have a prosperous future?
How big of an impact do you think this Tether disclosure had on the recent downtrend of bitcoin and the whole market?
The news that only about 70% of what they released is really backed up with fiat is old news, this was discussed back in 2017, and then something like that was confirmed in 2019 Tether Says Its USDT Stablecoin May Not Be Backed By Fiat Alone. The whole thing has been very clear about this for years, but has it influenced people to stop using this stable coin? Well, of course not, because all that matters to them is that they can make fast and cheap transactions, everything else is less important. So I think this news has almost no impact on what happened yesterday.
In the long run, I think that USDT is certainly a risk, as most stablecoins are actually in the gray zone, which allows their owners to print the quantities they need at some point - of course without covering with anything. Bitcoin is based on POW (Proof of work), and stablecoins on POFP (Proof of false promises) - and that's a huge difference.