WEBVTT

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A stablecoin aims to track another asset, often the US dollar.

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The target is a design goal, not a guarantee.

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Some use reserves managed by an issuer.

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Others use crypto collateral or different mechanisms. Their risks are not interchangeable.

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Weak reserves, redemption problems or software failures can disrupt the peg.

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Some issuers can also freeze tokens.

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Before using one, check the issuer, the supported network

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and how you can redeem or sell it.

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Stablecoins are not automatically equivalent to insured bank deposits.