Coinbase Ventures Invests $20M in Kontigo Amid Yield Concerns

The stablecoin startup bank’s 10% USDC yield promise raises questions over its revenue model, with some fearing parallels to Terra’s collapse.

USDC

Summary

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Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as the US dollar.
  • USDC: A U.S. dollar-pegged stablecoin issued by Circle, used for payments and trading within the crypto ecosystem.
  • Yield: The earnings generated on an investment over a period, often expressed as an annual percentage rate.