The newly launched $KGST financial activity offers an annualized return of 12%, but I will not participate and will keep my position at $RLUSD unchanged. The reasons are as follows:
1. The volatility is large, and the loss of principal is difficult to make up for. Although it is a stablecoin, looking at the normal volatility range, if the price drops from the current 0.01144 to about 0.01132, the decline exceeds 1%. If I invest 10000u, the maximum loss of principal will be over 100u, which cannot be compensated by a month's interest.
2. It is not a USD stablecoin. It is pegged to the national currency of Kyrgyzstan, which has a weak credit rating, and its value will fluctuate with the Kyrgyz som against the USD, adding another uncertain factor.
3. There is no effective regulation. To put it bluntly, this stablecoin is currently not under the supervision of any authoritative regulatory body, and if wrongdoing occurs, there is no room for rights protection.
4. Although it is an activity from Binance, backed by the soft endorsement of the Universe Exchange, it is not something that is clearly documented. Binance advises everyone to DYOR.
The above points are for your reference; do not take risks for that little profit. Be sure to calmly assess and think before participating in the activity.
1. The volatility is large, and the loss of principal is difficult to make up for. Although it is a stablecoin, looking at the normal volatility range, if the price drops from the current 0.01144 to about 0.01132, the decline exceeds 1%. If I invest 10000u, the maximum loss of principal will be over 100u, which cannot be compensated by a month's interest.
2. It is not a USD stablecoin. It is pegged to the national currency of Kyrgyzstan, which has a weak credit rating, and its value will fluctuate with the Kyrgyz som against the USD, adding another uncertain factor.
3. There is no effective regulation. To put it bluntly, this stablecoin is currently not under the supervision of any authoritative regulatory body, and if wrongdoing occurs, there is no room for rights protection.
4. Although it is an activity from Binance, backed by the soft endorsement of the Universe Exchange, it is not something that is clearly documented. Binance advises everyone to DYOR.
The above points are for your reference; do not take risks for that little profit. Be sure to calmly assess and think before participating in the activity.