Question

What is the risk of USDC?

Answer 1

According to Circle, USD Coin is always redeemable 1:1 for U.S. dollars. But if Circle or Coinbase ends up going out of business, it's impossible to be 100% sure that USD Coin will maintain its value. Stablecoin regulations are also a concern.

Answer 2

The risk of USDC, which is a stablecoin issued by Centre, is primarily associated with counterparty risk. This risk arises from the fact that USDC is backed by US dollars held in reserve by regulated financial institutions. If these reserves are mismanaged, misappropriated, or if the issuer faces insolvency, there could be a risk to_