CEX Quiz Answers 24 December 20241. Can …

CEX Quiz Answers 24 December 2024
1. Can wrapped tokens be unwrapped to retrieve the original asset?
– Yes
2. What is one benefit of wrapped tokens?
– Increased liquidity across blockchains
3. What is a wrapped token?
– A token that represents another cryptocurrency on a different blockchain
4. What analogy was used to describe giving Bitcoin a passport?
– World travel
5. Who holds the original asset in the wrapping process?
– A custodian
6. Wrapped tokens allow participation in what ecosystem?
– Decentralized finance (DeFi)
7. What is a potential risk associated with wrapped tokens?
– Trusting third-party custodians
8. What should you ensure about custodians when dealing with wrapped tokens?
– They are reputable
9. What happens to the original asset when a token is wrapped?
– It is held in a secure vault by a custodian
10. Why are wrapped tokens used?
– To enable cryptocurrencies to operate on different blockchains
11. What does wrapping a token allow you to do?
– Use the cryptocurrency on various blockchains
12. What is the main purpose of wrapped tokens?
– Bridging gaps between blockchains
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