The post Binance’s FDUSD stablecoin regains its dollar peg after flash crash appeared on BitcoinEthereumNews.com.

Binance’s FDUSD crashed as low as $0.95, causing limited market panic and inviting traders to make use of the loss. FDUSD has been a key source of liquidity for several of Binance’s trading pairs.  FDUSD, a stablecoin specifically issued for trading pairs on Binance, is back above $0.99, almost regaining its $1 peg. The token, which has so far remained reliable, had a de-pegging event, sinking as low as $0.87.  FDUSD regained its peg after causing market instability in its main pair with BTC. | Source: Coingecko The immediate reason for the de-peg is a statement by TRON’s founder, Justin Sun. He claimed the stablecoin issuer, First Digital Trust, was insolvent and incapable of honoring FDUSD redemptions. This led to market panic and the immediate chaotic dip of the stablecoin.  First Digital Trust debunked those claims, but not before seeing FDUSD suffer the effect of the market panic. In a social media statement, First Digital Trust claimed all issued stablecoins are backed by traceable T-bills and other assets. The company also stated it would seek legal action against Sun for the smear campaign.  The recent allegations by Justin Sun against First Digital Trust are completely false. This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent. Every dollar backing $FDUSD is completely, secure, safe and accounted for with US backed T-Bills. The… — First Digital (@FirstDigitalHQ) April 2, 2025 The probable reason for Sun’s attack is that FDT was at one point responsible for the backing of TrueUSD (TUSD). The asset turned insolvent, requiring Sun to bail it out with $450M of his own funds. Sun’s involvement with TUSD was documented by a Hong Kong court, which is now investigating the stablecoin’s backing.  FDT has been accused of not providing sufficient oversight of TUSD’s reserves. FDT…

---

Filed under: News - @ April 3, 2025 9:22 am