Which of the following statements are FALSE? Crypto-collateralised stablecoins backed by a basket of other cryptocurrencies are more diversified and hence more stable than those backed by a fiat currency such as the USD. Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs) are very similar since both raise funds for companies and both represent an equity stake in a company either in the form of shares (IPOs) or tokens (ICOs). BigTechs are potentially a bigger threat for banks than FinTechs since they have a much larger customer base. II and III. None of the statements. I and III. I and II. I, II and III. Choose 1 from above.
Which of the following statements are FALSE? Crypto-collateralised stablecoins backed by a basket of other cryptocurrencies are more diversified and hence more stable than those backed by a fiat currency such as the USD. Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs) are very similar since both raise funds for companies and both represent an equity stake in a company either in the form of shares (IPOs) or tokens (ICOs). BigTechs are potentially a bigger threat for banks than FinTechs since they have a much larger customer base. II and III. None of the statements. I and III. I and II. I, II and III. Choose 1 from above.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Which of the following statements are FALSE?
- Crypto-collateralised stablecoins backed by a basket of other cryptocurrencies are more diversified and hence more stable than those backed by a fiat currency such as the USD.
- Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs) are very similar since both raise funds for companies and both represent an equity stake in a company either in the form of shares (IPOs) or tokens (ICOs).
- BigTechs are potentially a bigger threat for banks than FinTechs since they have a much larger customer base.
II and III.
None of the statements.
I and III.
I and II.
I, II and III.
Choose 1 from above.
Expert Solution
Step 1
Crypto collateralized stablecoins which are backed by other Cryptocurrencies. This means that the stable coin issuer has other cryptocurrencies in his bucket. Hence, they can be used to launch asset on a different blockchain. They are more decentralized and less regulated as compared to fiat backed stable coins. Though Crypto-collateralized stable coins seem to be more diversified but they are more risky/volatile as compared to fiat backed stable coins. Since fiat backed stable coins are pegged to U.S dollar and they are more strictly regulated to maintain the volatility of the coins. Hence, Statement 1 is False
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