Despite Their Name, Stablecoins Remain a Risky Investment. Here Are 3 Concerns Investors Should Keep Top of Mind When Investing in This Soaring Asset Class.

Stablecoins have become one of the hottest success stories of the year for the crypto market. Now that new stablecoin legislation (the GENIUS Act) has passed, stablecoins are likely going to gain even more momentum.But here's the thing: Some crypto watchers are already warning that stablecoins might not be as "stable" as they first appear to be, and could introduce all sorts of systemic risk into the financial system. Here are three risk factors you need to know.Stablecoins are digital currencies that are pegged 1:1 to the value of the U.S. dollar. At all times, you should be able to exchange one stablecoin for $1. And, indeed, if you look at a chart for a top stablecoin such as Tether (CRYPTO: USDT) or USDC (CRYPTO: USDC), you'll see this immediately. Yes, there are tiny fluctuations on a daily basis, but by and large, a stablecoin always trades for $1.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool