These days, a multitude of people are worried that tethers are not backed by real dollars, and they might not be tethered to anything. However, at the moment, tethers do work because traders and exchanges have the firm belief that for the time being the 1:1 backing will work. Tether also provides significant liquidity, something that USD or any other nation-state issued currency can never offer. It takes the fiat friction completely out of the equation, and until the project falls by the wayside, it has made many people rich. If tethers 1:1 USD backing is a house of cards, for now, they have provided investors and traders with the belief that it can be a safe haven, offer friction-free trading, and enable significant arbitrage opportunities.