Cryptocurrency Q&A
What are the risks of USDC?
What are the risks of USDC?
Margherita
Tue Oct 29 2024
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6 answers
1372
I want to understand the potential risks associated with using USDC, the stablecoin pegged to the US dollar. I'm concerned about its stability, regulation, and any other factors that might affect my investment.
6 answers
Eleonora
Thu Oct 31 2024
Counterparty Risk is a significant concern in the realm of stablecoins.
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Bianca
Thu Oct 31 2024
When a bank holding a substantial portion of USDC's reserves collapses, it can drastically reduce the liquidity supporting USDC.
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DigitalLegendGuard
Thu Oct 31 2024
This reduction in liquidity can lead to a decoupling of the stablecoin's value from the underlying asset it is pegged to.
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Valentina
Wed Oct 30 2024
Such an event unfortunately occurred in March 2023.
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Michele
Wed Oct 30 2024
Three major US banks, namely Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank, failed during this period.
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