EURI: Understanding the Risks and Limitations of Stablecoins! ⚠️🧐
Like any digital asset, EURI has its risks and limitations that are important to understand before use.
Issuer Risk: Although EURI is issued by the regulated entity Banking Circle SA and has protective mechanisms, there is always a risk associated with trusting a centralized issuer.
Peg Risk: Despite the 1:1 backing, in extreme market conditions or in the event of serious trust issues with the issuer, a temporary loss of peg may theoretically occur.
Regulatory Risk: Although EURI complies with MiCA, future regulation of crypto assets is still evolving, and changes may occur that could affect its status or use.
Smart Contract Risk: Despite audits, there is always a minimal risk of vulnerabilities in smart contracts, although this risk is significantly reduced through checks.
Dependence on Blockchains: The operation of EURI depends on the stability and security of the underlying blockchains (Ethereum, BNB Smart Chain).
Understanding these risks helps users make informed decisions when using EURI.
