This week, Phil is joined by Aidan Redmond, from the Ladenburg research team to discuss stablecoins, how they’re used, as well as the latest updates from the Federal Reserve and current consumer trends.
Important Disclosures on Stablecoins:
Stablecoin is a type of cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm. Investing in Stablecoins comes with risks, including depegging risk: the primary risk is that the issuer may not be able to redeem tokens at face value, potentially causing the stablecoin to lose its peg (factors like insufficient reserves, lack of transparency, and market conditions can contribute to depegging events), operational and security risks: Stablecoins face risks like smart contract vulnerabilities, hacking, phishing scams, and fraudulent schemes and regulatory risk and Stablecoins are a subject of ongoing regulatory scrutiny due to concerns about risks like money laundering and their potential impact on monetary policy and financial stability.
Stablecoins are not insured, guaranteed, or regulated in the same way as traditional securities. This communication is for informational purposes only and does not constitute a recommendation to buy or sell any cryptocurrency. Please consult with a qualified financial professional to determine if such investments align with your financial goals and risk tolerance.