Stablecoin FDUSD Depegs from US Dollar
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The stablecoin FDUSD experienced a sudden drop from its dollar peg following concerns about its issuer, First Digital Trust (FDT).
Tron founder Justin Sun stirred controversy by alleging that FDT might be insolvent and unable to honor client fund redemptions.
Designed to maintain a 1:1 value with the US dollar, FDUSD depegged by over 11% shortly after Sun’s comments surfaced. The market reacted quickly, with traders selling off their FDUSD holdings due to fears it might not be fully backed by redeemable reserves.
In a public post, Sun suggested First Digital Trust was facing liquidity issues, alarming the crypto community. Although FDT has not confirmed these claims, the reputational damage was enough to unsettle FDUSD holders.
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