Earn #InviteToEarn FDUSD, a stablecoin issued by First Digital Trust, experienced a significant depegging event. The coin’s value briefly fell to $0.8726 amid allegations of insolvency from Tron founder Justin Sun, who claimed that First Digital Trust was “effectively insolvent” and unable to process redemptions.  
In response, First Digital Trust refuted these allegations, stating that every dollar backing FDUSD is secure, safe, and fully accounted for with U.S. Treasury Bills. The company labeled Sun’s claims as a “smear campaign” and announced intentions to pursue legal action to protect its reputation. 
Following these developments, FDUSD’s price partially recovered, trading around $0.9756 at the time of reporting. The incident has raised concerns about the stability of FDUSD and the transparency of its reserves, especially given Binance’s significant holdings of the stablecoin.  
First Digital Trust maintains that FDUSD is fully backed by U.S. dollars held in segregated, bankruptcy-remote accounts, and that the dispute pertains to TrueUSD (TUSD), another stablecoin managed by the company. The company emphasizes its commitment to transparency and regulatory compliance, with attestation reports available for public review.
$FDUSD