Stablecoin Risks Explained

stablecoins risk

Understanding depeg risk, liquidity risk, and issuer risk in USD stablecoins.

Main Risks

1. Depeg Risk

If panic selling occurs, price may fall below $1.

2. Reserve Risk

Backing assets may not be fully transparent.

3. Regulatory Risk

Government restrictions can limit operations.

4. Smart Contract Risk

Bugs or hacks can compromise funds.


Stablecoins are tools — not guaranteed safe assets.

If you are specifically researching USAT, see our detailed analysis: Is USAT Safe?.