When Stablecoins Go Rogue: FDUSD’s Dramatic Plunge 🤯

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Oh, what a day in the world of crypto! FDUSD, First Digital’s stablecoin, took a nosedive, losing nearly 10% of its value. It seems someone forgot to tell it to stay pegged. And who else but the one and only Justin Sun, Tron’s founder, to add drama, claiming First Digital is “insolvent.” Can you believe it?!

Stablecoin FDUSD Slips as Legal Action, $456M Allegations Hit First Digital

Coindesk dropped a bombshell, reporting that Sun played hero to the TUSD stablecoin project, rescuing it from a $500 million pickle. Apparently, Techteryx, the group behind TUSD, is not happy with First Digital’s CEO, Vincent Chok, accusing him of investing $456 million in TUSD reserves in some kind of black hole. Sun, never one to shy away from a spotlight, took to X, urging everyone to run for the hills, FDUSD-style. “First Digital Trust is, in fact, already insolvent,” he said, as if stating the weather forecast. 🌬️

FDUSD/USDT on Binance on April 2, 2025. FDUSD is the sixth-largest stablecoin by market cap. But who’s counting?

Sun didn’t stop there. He warned, “If you have any ties with them, cut them like they’re last season’s fashion.” Harsh words for Vincent Chok, who might need more than a good lawyer now. FDUSD took a hit, dipping below $0.90, but managed to crawl back up to $0.9737 by the time the presses rolled. First Digital, not one to take things lying down, fired back on X, denying everything and calling it a “smear campaign.” They even invited everyone to an AMA session to clear the air. 🗣️

First Digital assured everyone that every dollar backing FDUSD is as secure as Fort Knox. “The exact ISIN numbers of all of the reserves of FDUSD are set out in our attestation report and clearly accounted for,” they said. Sounds legit, right? Well, we’ll see. In the meantime, Sun doubled down on his warnings, even posting them in Chinese. Because why not? FDUSD, meanwhile, is still a hit on Binance, with the exchange holding 87% of all the circulating coins. Talk about loyalty, eh?

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2025-04-02 21:27