FDUSD De pegs Following Insolvency Rumors and Justin Sun’s Concerns

Stablecoin FDUSD saw a sudden drop of over 11% from its dollar peg following claims by Tron founder Justin Sun that First Digital Trust (FDT), the issuer, may be insolvent and unable to honor fund redemptions. Sun’s accusations led to rapid market reaction, with traders withdrawing their FDUSD holdings due to fears of insufficient backing. While FDT has yet to address these concerns, their silence amplifies uncertainty for investors, particularly in light of the significant depeg witnessed.