Tether, and the effects on crypto

What is Tether? Tether is simply a cryptocurrency. It is supposedly backed 1:1 dollar. In other words, you can exchange one tether into one dollar. This makes life very easy for traders, especially those that trade on several exchanges. Sounds good right? Now here comes the problem.

A lot of the value you see in different coins aren't actually the dollar price, its the USDT price, or in other words, tether. So if I hold one Neo, and its worth 100USD then I can trade the neo in for 100USDT and cash them out. Or if I would use coinbase I can cash them out directly to USD. The conspiracy here is that Tether isn't really backed. That means if enough people cash out, then the small amount of USD there is in the reserve will go empty. And the value of cryptocurrency would fall dramatically, we are talking 80% drop.

Evidence?
There isn't hard evidence that this is the case, but at the same time there is no evidence to disprove the conspiracy. One concern is the exponential growth in the amount of Tether printed, search it up, its insane. Currently, there are 2billion tetheres. In other words, there must be 2billion USD in reserve to match the 1:1 ratio.

Remember that there have been these allegations against tether for a long time. The big concern here is why isn't tether coming out and proving all the naysayers wrong. If I have 2billion of other peoples money in reserve, and they threw allegations at me for months, I would simply prove them wrong. But tether hasn' done this... Why? probably cus they don't have the money.

Why do I care? Well, the SEC, Securities and Exchange Commission, have clearly stated resently that they will start investigating ICO's and other scammy projects. One of them might be USDT, and if it is proven a scam, there will be bloodbath in the crypto communety.