If TFXI actually created, mint and use the coin as its payment currency, it will be wise to rethink your investment. Any crypto that does not have any functionality, practicality and are in full control of its creator are bound to fail, especially if it does not have a good ecosystem. A crypto currency that are only circulating in its community and does not have any function are worthless. A lot of scenarios can happen and the result will be really bad.

Taking a real world example, what if one currency are not in demand in the world market, does not have enough assets as a base peg value, are printed at the will of the controlling entity and are only used locally amongst its holder? You got a Zimbabwe dollar in the making. This will be even worse if the controlling entity are corrupted.

No, it does not work that way. A currency issuer does not buy or sell the currency solely on its own. When we sell MYR for USD, BNM does not buy back the all the currency. The market players, for example, private bank, money exchanger, etc, are the main buyers. Then it will sell it back for other currency depending on its needs. This is how it works in a healthy market. This is how USDT work as well. There are holder of USDT and other crypto that need it both way, hence, one of the reason for its sustainability.

With the way you phrase it, it sounds as if the company are the only buyer for the new coin. If it does not have any other function, nobodies are going to buy it. Holders will only sell it for USDT. In that case, the coin basically only serve as a letter of credit. And if the company are already having problem issuing USDT to its clients seeking withdrawal, what difference does it make when the company is the sole buyer of the said coin? I might be wrong but if this is the case, it seems to me that this is just another nicer/high tech way to repackage, divert and drag on the current withdrawal issues for the uninitiated clients.

I'm curious. At the moment, it's confirmed that they have converted all the USD into TFX coin as their currency in use in their platform, right? Meaning that profit shared and withdrawal are and can only be done in TFX coin, right?

My question is, does they accept their own TFX coin for new investment into their FM? To further elaborate, is it possible for a new investor to join the exchange, buy TFX coin in the exchange for a cheap rate, attach himself to an up-line and invest in their FM using the cheaper TFX coin?

Or does they only accept USDT for investment and then convert it into TFX coin once it is in their platform?

But I thought it's 1:1 in the system? Now they use the fluctuating rate in their exchange as the rate in their investment platform?

As a simple scenario, let's say I invest 1k USDT, I get 2.5k tfx in my account to allocate to their fund manager. Then at the end of the cycle, assuming profit 10% (for easy calculation), do I get 250 FTX or 100 FTX (since they claim 1:1)?

Ahh, true true. I forgot they have the jackpot coin machine type of system in place.