The recent sharp decline in FDUSD value led to significant drops in the crypto market and caused panic among investors. Information about withdrawals and accusations from Justin Sun added to the uncertainty.
FDUSD's Value Drop
The recent 13% decline in FDUSD came after the trading firm Wintermute withdrew $31.36 million from Binance. This event raised concerns about the stability of the stablecoin.
Justin Sun's Allegations and First Digital's Response
Justin Sun's accusations about FDUSD lacking proper backing triggered its depegging. First Digital responded with an official statement rejecting Sun's claims, asserting that FDUSD is fully backed and remains stable. A spokesperson for First Digital commented, "We've weathered many storms in this industry, and this is no different."
Updates from Binance
Binance provided an update regarding FDUSD reserves, noting that it conducts monthly reviews. A recent report confirmed that FDUSD's reserves exceed $2 billion, affirming a 1:1 backing to the US dollar.
The situation with FDUSD highlights the volatility of the cryptocurrency market and the importance of transparency in building investor trust. Additional reports and updates are expected in the near future, which may clarify the current state of affairs.
