90% of the value is allowong people to dump crypto to anltber asset that is crypto-osh but is "pegged" (the truth of which is more like a consensus of biased investors) to USD but doesnt trigger tax problems the dame way axtjally cashing out would.

the backing by a physical dollar is whats supposed to peg it to make the fiction that holding $1m in tether is equivelant to holdong $1m.