Every time there's a tether story here, the inevitable discussion of fraudulent activity comes up because Tether seems like an outright scam. I'm inclined to believe all that from what I've read and however little I can make sense of. However, I can't really tell how this ends. They seem confident that there will be no repercussions to minting money out of thin air and, so far, they've been right. Eventually, that's…
Beyond the fraud allegations, the idea that an organisation can just print extra money as they see fit, doesn’t that go against the principles of crypto finance? I am genuinely curious why people think that is a sustainable idea.
There isn't really such a think.
There are many crypto currencies with different goals and approaches to handling market dynamics. And there are some where doing such a think is fully against there principles and would brake their marked dynamics. But not necessary for other reasons. But this also means you need to look at the specific crypto system in question to decide why it might or might not work.
I don't know much about Tether specifically, but lets say you have a new arbitrary crypto currency you try to make price stable, but like many crypto currencies it end up having deflationary tendencies (more demand, money getting "locked" in, etc.). In which case minting new coins would not only be sustainable but likely necessary.