You're correct. Which using occam's razor means they didn't actually collect a dollar for every coin they created.
All of these stablecoins may have started legitimate, but realized that nobody could tell the difference between backed coins and unbacked coins. So they kept creating unbacked coins and had enough capital floating around daily to cover the required daily maintenance of the peg.
It all works swimmingly until the music stops, then you cash out your billion bitcoin wallet and disappear to a tropical island somewhere.
All of these stablecoins may have started legitimate, but realized that nobody could tell the difference between backed coins and unbacked coins. So they kept creating unbacked coins and had enough capital floating around daily to cover the required daily maintenance of the peg.
It all works swimmingly until the music stops, then you cash out your billion bitcoin wallet and disappear to a tropical island somewhere.