Asking for help in DYOR: What happens to my Nexo account if/when Tether goes bust like TITAN?

Hi Everyone, Thanks for helping find the correct sources for research. I’ve been thinking about what could happen to my account if Tether goes into a similar crisis as TITAN did a couple of weeks ago? (The TL;DR is that whales tried to cash out TITAN resulting in destabilizing the “stable coin” algorithm which caused a literal price crash to zero) TetherUSD has only 2.9% cash reserves, and as of July 15 2021, that’s 1,812,500,000 backed 1:1, the rest is in commercial papers and the company has gotten into trouble over saying it’s fully backed.

Let’s say Q4 has a crazy bull run of ETH and BTC and whales want to cash out, resulting in a similar situation to TITAN crash but with USD Tether. I know theoretically that is a very rare event - but this is part of DYOR.

What happens to the Nexo network? Will there be a freeze on withdrawals? Would I still be able to convert USDT to other stable coins and withdraw?

How much stablecoin does Nexo hold on reserve? Would there be enough USDC, Dai, TrueUSD etc for all users to convert into a backed stable coin?

This is not intended to spread FUD. I want to make sure I know my exit strategies in a volatile market: setting a stop loss and know when to transfer assets to cold storage.

I’m fairly new to crypto and I am fairly optimistic about it- however management practices of Tether remind me of things that led up to 2008 financial crisis.

I hope to stay and ride out future storms. Nexo has a good thing going. I just want to be as prepared as possible.

Thanks again!