[babble-on]

I believe he made claims that the crypto was backed by dollar holdings, but those holdings did not exist. He had spent them.

[zeestephen]

Yes, he did make claims that his stablecoins were backed by wealthy investors.

Stablecoins became very useful when crypto speculation reached its crescendo. In theory, they had a constant value based on major currencies.

Stablecoins gave speculators friction free trading access to the entire universe of several dozen different crypto coins.

Most of the crypto trading platforms would accept stablecoins in lieu of cash. When it turned out the stablecoins were worthless, the crypto universe started crashing, and may still be crashing.