A major stablecoin experienced a significant drop in value as rumors circulated about its Hong Kong-based issuer facing bankruptcy. The FDUSD, managed by First Digital Trust (FDT), saw its value depegged from the US dollar, causing concern among investors.
Crypto billionaire and Tron founder Justin Sun took to social media platform X to warn users about the situation and advised them to take immediate action to safeguard their assets. Sun also called on regulators to intervene and prevent further losses, emphasizing the need to protect Hong Kong’s reputation as a financial hub.
Despite Sun’s claims, FDUSD denied allegations of insolvency and stated that every dollar backing the stablecoin is secure and accounted for with US-backed T-Bills. They dismissed the accusations as part of a smear campaign orchestrated by a competitor.
The value of FDUSD initially dropped but has since recovered and is currently trading at $0.982, a slight decrease from the previous day. In response to the situation, FDUSD announced plans to pursue legal action to defend its reputation and uphold its financial standing.
As the controversy unfolds, it is crucial for investors to stay informed and monitor the developments closely. With the volatility in the cryptocurrency market, being vigilant and proactive in protecting investments is essential.
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