FDUSD, the stablecoin issued by First Digital, made waves in the crypto world this week after it briefly depegged to $0.8726 following news of a potential bankruptcy
During this time, the Wintermute trading firm swiftly withdrew 31.36 million FDUSD from Binance. This raised alarms about the stability of the stablecoin.
The depegging came on the heels of accusations from Justin Sun, the founder of TRON, who publicly stated that FDUSD lacked proper backing. His remarks stirred up a hornet’s nest of uncertainty, prompting sharp reactions across the market. As FDUSD’s value slipped, its trading pair with Bitcoin (BTC/FDUSD) saw a massive pump, with the BTC price rising by $99,000. This sparked even more speculation as investors tried to make sense of the shifting tides.
However, First Digital quickly came out to set the record straight. In a statement, the company firmly rejected Justin Sun’s accusations, calling them “baseless” and aimed at distracting from the issues facing Techteryx, a separate firm involved in the wider fallout. According to First Digital, FDUSD remains fully backed and solvent, asserting that the stablecoin’s value and structure are sound despite the temporary hiccup.
“We’ve weathered many storms in this industry, and this is no different,” a spokesperson for First Digital commented. “FDUSD is stable, solvent, and fully backed, and any claims to the contrary are simply noise. This stablecoin is here to stay.”
Binance has addressed concerns surrounding FDUSD by providing an update on the stablecoin’s reserves. The exchange reassured users that it regularly conducts monthly reviews and verifications of FDUSD’s reserve data. Following the release of FDUSD’s February attestation report, Binance reviewed and reconfirmed the accuracy of the data, which showed FDUSD’s reserves stood at over $2 billion, surpassing the circulating supply and confirming the coin’s 1:1 USD backing.
Binance also noted that an in-depth review of the March attestation is underway, with the report expected within the next two weeks. The exchange emphasized its commitment to transparency and will continue to provide timely updates through official channels.
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SOLJustin Sun announced lack of backing of FDUSD stablecoin. FDUSD started depegging and dumped 13% BTC/FDUSD pair pumped up $99,000 Another traumatising day in crypto.
First Digital stands firm: Justin Sun’s baseless accusations won’t distract from Techteryx’s own failures— our stablecoin FDUSD remains fully backed and solvent. Read our official statement.
Binance has released an update on FDUSD attestation report, which confirms full 1:1 backing. We remain committed to ensuring our users are informed and will continue to provide timely updates. More information 👉 binance.com/en/support/ann…
