>whether Tether is fully collateralized ultimately doesn't matter
There's a nuance here.
If Tether IS full collateralized, then it does not matter since a run on Tether is by definition impossible.
If Tether IS NOT fully collateralized then it may or may not matter depending on the size of the run and the ability of Bitfinex etc. to contribute capital.
Full collateralisation isn't enough to rule out a run on USDT, since the value of the collateral can vary depending on market conditions. We can be certain that one USDT will always be redeemable for one USD, as long as USDT is fully backed with USD, but we already know from the attestations this is not the case.
Right, I'm assuming collateralization by bank accounts, money market accounts, and short term Treasuries. Not commercial paper issued by Binance and Bitfinex.
There's a nuance here.
If Tether IS full collateralized, then it does not matter since a run on Tether is by definition impossible.
If Tether IS NOT fully collateralized then it may or may not matter depending on the size of the run and the ability of Bitfinex etc. to contribute capital.