Transparency and business structure of Tether cause concerns among industry professionals.

Golden Finance reported that Tether's market share exceeds 75% of the entire Stable Coin market, which has raised concerns about Tether's impact on the encryption industry. Justin Bons, the founder of Cyber Capital, is concerned that Tether may be a bigger eyewash than FTX. Bons wrote in a post on September 14th: Tether is one of the biggest existential threats facing the entire Cryptocurrency. Because we have to believe they hold Collateral of $118 billion, without providing any evidence. Even after Tether was fined by the CFTC in 2021 for misreporting reserves. As early as 2021, Tether was fined $41 million by the U.S. Commodity Futures Trading Commission (CFTC) for falsely claiming that USDT was fully backed by reserves. IDA Finance co-founder Sean Lee stated that while FTX's collapse was due to its inability to cash out a $6 billion withdrawal from clients within three days, the potential collapse of Tether is more related to its banking partners. "Regardless of the Bear Market, the likelihood of Tether's collapse is more related to its structural connections with underlying assets and banking operations, rather than market Fluctuation. Otherwise, USDT would have suffered losses in the previous Bear Market, but in reality, due to reliance on SVB and Signature Bank, USDCdepegged."