According to Mike Silagadze, comparing Tether’s reserves to fractional-reserve banking is wrong because banks run delta-neutral books by holding collateralized loans and bonds rather than volatile assets, implying a different risk profile (source: Mike Silagadze, Twitter, Nov 30, 2025). He warns that if Tether’s backing falls below 100%, USDT would be insolvent and could go to zero, triggering broad crypto market stress across major pairs including BTC and ETH (source: Mike Silagadze, Twitter, Nov 30, 2025). For trading, this positions any evidence of sub-100% reserves or a USDT depeg as a high-severity risk signal to reduce USDT exposure, monitor liquidity, and hedge core positions in majors, given his stated systemic-risk view (source: Mike Silagadze, Twitter, Nov 30, 2025).