Although stablecoins seem like a safe haven during market volatility, they are not without risks. In this warning, we highlight the main risks associated with investing in stablecoins like USDC/USDT on the Binance platform, especially the sudden drop in liquidity and its impact on traders.
---
1. Depegging Risks
Definition: Depegging occurs when the stablecoin's price falls below its peg (usually 1 USD).