If the price of BTC / USD collapses to zero (we might think that unlikely but these are experiments and literally anything can still happen, for reasons such as BTC getting replaced, regulatory issues, FINCEN sanctions etc.) the exchange CB will likely go bankrupt for a multitude of reasons, no trade volume, no commissions, no customers, in contrast to high operating & compliance costs. etc. But, that is not the essence of the argument here. The overriding argument here is that if Bitfinex/ Tether are able to ‘fraudulently’ attract (they misrepresent USD values on their exchange which are actually Tethers that are not legally redeemable for USD) BTC into their exchange with the offer of higher USDt values, which is a manipulated price set to attract money into a fractional reserve system, whereby the number of Tethers is much greater than USD reserves, then combine this with an aggressive Tether led, BTC for real USD selloff, on Coinbase then Bitfinex and Tether will be able to accumulate huge dollar reserves before any crash happens, thus they themselves could end up dollar rich, while instigating flash crashes on their own exchange and wiping out customer accounts. This is precisely the game theory that BTC was invented with the intention of thwarting, whereby governments and central banks operated in the same manor. Tether is turning BTC and Cryptos into a fractional reserve system! That is the antithesis of the value proposition of BTC, with its finite supply programmatically set rules. Also exposing the crypto market making it prone to massive market manipulation, controlled selloffs, pump and dumps, etc. By an entity with no moral compass.