Which risk is most directly associated with smart contract–based DeFi platforms?
Explanation
Technical vulnerabilities in smart contracts present a primary operational risk for DeFi platforms.
Other questions
Which statement best describes a distributed ledger?
What is the primary difference between proof of work (PoW) and proof of stake (PoS)?
Which of the following is a permissionless network characteristic?
Smart contracts on a blockchain are best described as:
Which asset is a non-fungible token (NFT) most suited to represent?
Which of the following best describes a stablecoin backed by fiat reserves?
Which risk is most associated with centralized cryptocurrency exchanges?
Which scenario most clearly exemplifies a pump-and-dump scheme in crypto?
Which statement about asset-backed tokens is correct?
Which investment vehicle allows exposure to Bitcoin without requiring a crypto wallet and often trades OTC or exchange-listed?
Which of the following best explains the primary price driver for most cryptocurrencies?
Which of these is an example of an indirect crypto investment through an established exchange product?
Which token type grants holders voting rights over protocol upgrades and governance?
What is a major systemic risk highlighted for algorithmic stablecoins?
Which of the following best captures the custodial risk of direct crypto ownership?
Which example from the chapter illustrates exchange counterparty risk leading to insolvency?
Which factor would most likely reduce decentralization in a blockchain network?
Which of the following best describes DeFi (decentralized finance)?
Which empirical characteristic of Bitcoin is emphasized in the chapter?
Which of the following is an example of backfill bias in crypto performance indexes?
Which description best fits a utility token?
Which statement about ICOs (initial coin offerings) is accurate according to the chapter?
Which of the following is a key advantage of tokenizing physical assets?
Which factor most contributed to Terra/Luna's collapse as presented in the chapter?
Which of the following statements about decentralized exchanges (DEXs) is true?
If an investor wants exposure to crypto futures with standardized settlement and regulated exchange oversight, which instrument should they choose?
Which of these is NOT a distinguishing characteristic between digital assets and traditional financial assets listed in the chapter?
Which type of index bias occurs when underperforming crypto funds stop reporting and are removed, inflating index returns?
Which is a common indirect way for retail investors to gain broad crypto exposure with greater liquidity and no direct self-custody?
What is the principal reason many cryptocurrencies show high volatility, according to the chapter?
Which of the following best describes a governance structure concern for tokenized assets?
When comparing permissioned to permissionless blockchains, which is generally true?
Which of the following best captures the chapter's guidance on due diligence for stablecoins?
Which of these is TRUE about central bank digital currencies (CBDCs) as described in the chapter?
Which scenario would most likely indicate a 'whale' effect in a token market?
Which of the following best summarizes how smart contracts can improve post-trade processes?
Which of these is a likely consequence of increasing institutional adoption of cryptocurrencies according to the chapter?
Which of the following best describes an advantage and a drawback of funds-of-crypto-funds (funds that pool crypto hedge funds)?
Which of the following is a correct statement about cryptocurrency futures contracts outlined in the chapter?
Which of the following best describes the term 'minting' as used in the chapter context?
Which of the following is an operational advantage of Separately Managed Accounts (SMAs) for large crypto investors mentioned by analogy in the chapter?
Which practice helps mitigate the risk of exchange insolvency for an institutional crypto investor, per chapter guidance?
Which of the following best explains why crypto ETFs may underperform direct holdings of cryptocurrencies?
Which of these best describes the '51 percent attack' risk mentioned in the chapter context for PoW networks?
Which of the following is a correct statement about cryptocurrency correlations over time per the chapter?
Which of the following is a typical feature of meme coins discussed in the chapter?
Which of the following best captures a limitation of crypto indices highlighted by the chapter?
Which of the following is a key reason an institutional investor might choose a fund-of-crypto-funds over direct coin ownership?
Which combination of risks best summarizes the unique threats to crypto investors per the chapter?