Cryptocurrency Q&A
What is Celo backed by?
What is Celo backed by?
Stardust
Sun Jun 30 2024
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5 answers
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Could you elaborate on the underlying support or backing of the Celo network? What assets or entities are serving as the foundation for its stability and trustworthiness? Is there a reserve system or collateralization mechanism that underpins the value of the Celo token? Additionally, what measures does the Celo network take to ensure its long-term sustainability and resilience in the ever-evolving cryptocurrency landscape? Understanding the underlying mechanisms that back Celo is crucial for investors and enthusiasts alike to make informed decisions.
5 answers
Federica
Tue Jul 02 2024
The inaugural stablecoin, named Celo Dollars (cUSD), will be designed to maintain a one-to-one peg with the US dollar, ensuring stability and trustworthiness.
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Stefano
Tue Jul 02 2024
To achieve this stability, the initial overcollateralized reserve will consist of a diverse portfolio.
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Alessandro
Tue Jul 02 2024
At the core of this reserve is Celo's native asset, CELO, which plays a crucial role in maintaining the peg and providing liquidity.
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EmilyJohnson
Tue Jul 02 2024
In addition to CELO, the reserve will also include other liquid cryptocurrencies such as Bitcoin and Ether. These assets are chosen due to their established reputation and market liquidity.
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Chiara
Tue Jul 02 2024
The introduction of the Celo "stablecoin" marks a significant milestone in the world of cryptocurrency.
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