Thanks for the response, but again - what relevance does a bank have to do with the Tether token? If Tether the company is making this their business model, then I certainly see your point. Clearly the Bitfinex exchange has problems.

I'm more referring to the concept of a stable coin in general. If you have a stable coin, whether or not you have fractional reserves in a centralized entity is irrelevant to the dynamics of supply and demand for the token itself. Whether or not people can cash out their crypto is the responsibility of the exchange you are using, or other type of selling/exchange method used by the holder.

So, if Bitfinex screwed something up, and can't give people their money - is that not an exchange issue? Theoretically a "flex-supply" stable coin should be able to have its value stabilized without regard to fiat backing in any way, no? And accordingly - regardless of the condition of the company Tether, the Tether token should have value relative to its usage and its ability to stabilize the price at 1 USD.