Jeremy Kranz, founder of Sentinel Global, has advised investors to closely examine the terms of stablecoins, highlighting risks akin to those associated with Central Bank Digital Currencies (CBDCs). Kranz pointed out potential issues such as surveillance, asset freezes, and regulatory controls that could impact stablecoin stability.
He stressed the necessity for investors to understand the backing and redemption terms of stablecoins, as well as the credibility of their issuers. Different stabilization models present unique risks, including the possibility of de-pegging and model failures, which could affect the value and reliability of these digital assets.
Sentinel Global Founder Urges Caution on Stablecoins Amid Risks
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