How anyone is willing to take the chance with placing their money in tether, instead of for example bitUSD, is beyond me.

Allow me to recommend this excellent write-up about bitUSD by @cob:

BitUSD is both pegged to the USD and decentralized in nature.
No counterparty risk.
Audited by default by a non-corruptible blockchain.
Finally has volume - which was the old issue with it.
Anyone can issue if they wish

https://steemit.com/bitshares/@cob/the-iron-is-hot-for-bitshares-a-look-into-bitusd