Binance conducted additional checks on First Digital USD (FDUSD) reserve data following a temporary de-pegging event that sparked discussions within the crypto community.
FDUSD Reserve Confirmation
Binance reported conducting two reviews of First Digital USD (FDUSD) reserve data to verify their accuracy after the February attestation report. As of March 1, FDUSD had $2.05 billion in reserves, held in fixed deposits and U.S. Treasuries.
Justin Sun's Allegations
Tron founder Justin Sun accused First Digital Trust of insolvency, leading to a temporary drop in the FDUSD price. Following his statement, FDUSD's price fell to as low as $0.87 before recovering.
Market Reaction and Company Actions
In response to Justin Sun's accusations towards First Digital Trust, the company has denied these claims, asserting FDUSD is fully backed. FDT announced intentions to pursue legal action, considering the statements defamatory, while Binance continues monitoring the stability of the stablecoin through further audits.
FDUSD has regained its stability, now trading at $0.99. Binance remains vigilant with plans for subsequent reviews to ensure trust in the stablecoin.
