Binance Stands Firm on FDUSD Reserves Amidst Wild Allegations and Market Mayhem

Binance's Double-Check Strategy

Hang on tight, folks! Binance isn't playing around when it comes to FDUSD's reserve accuracy. After a crazy de-pegging episode, they've gone in for a double-check. They looked at First Digital USD's (FDUSD) reserve data not once, but twice—first after the February report hit the streets, and then again recently. They're not messing around!

Reserves and Redemption

Listen up, the numbers are in! As of March 1st, FDUSD was sitting on a cool $2.05 billion in reserves, all wrapped up in fixed deposits and U.S. Treasuries, thanks to an audit by Prescient Assurance. This stash is bigger than the amount of stablecoin floating around, ensuring a solid 1:1 redemption with USD. Solid as a rock!

Justin Sun's Bombshell

Hold onto your hats! Tron (TRX) mastermind Justin Sun threw a grenade, claiming First Digital Trust was flat broke. This sent FDUSD tumbling off its peg, crashing 5% in a blink. Sun didn't stop there; he slammed Hong Kong's financial scene and urged investors to yank their cash out fast. Talk about a wild ride!

Protect users and protect HK First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets. There are significant loopholes in both the trust licensing process in...

The Aftermath and the Fight Back

Chaos ensued! Sun's bombshell triggered panic selling, sending FDUSD's price down to a heart-stopping $0.87 before it clawed its way back. But FDT wasn't having any of it. They fired back, calling Sun's claims a total sham and insisting FDUSD is fully backed. The gloves are off!

FDT pointed the finger at a beef over TrueUSD (TUSD), another stablecoin in their arsenal, and accused Sun of a full-on smear campaign. They're not just taking this lying down—they're threatening legal action against him. This is getting real!

Binance's Exposure and Industry Concerns

Now, here's the kicker: Binance holds about 94% of FDUSD's supply. This situation has everyone sweating over the exchange's exposure. Industry analysts are sounding the alarm about the dangers of hitching your wagon to just one stablecoin for those key trading pairs. It's a risky game!

FDUSD's Recovery and Binance's Watchful Eye

As of now, FDUSD seems to have steadied the ship, hovering at $0.99 amidst the market's wild swings. Binance isn't letting their guard down. They're planning another audit after the next report drops in two weeks and are keeping a laser focus on FDUSD's stability. They're in it to win it!