Binance Square

LiquidityAlert

279 views
2 Discussing
ChainWhisperer
--
See original
Warning and Advisory: Risks of Stablecoins and Short-Term Liquidity DropAlthough 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).

Warning and Advisory: Risks of Stablecoins and Short-Term Liquidity Drop

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).
Login to explore more contents
Explore the latest crypto news
⚡️ Be a part of the latests discussions in crypto
💬 Interact with your favorite creators
👍 Enjoy content that interests you
Email / Phone number