FDUSD, the stablecoin emitted by First Digital, based in Hong Kong, oscillated from its $ 1 price price while investors’ concerns rose on its reserves, although the company declared on Wednesday that it was “completely solvent”.
FDUSD fell to 0.87 against the stablecoin USDT of Tether and 0.76 against USDC of Circle on Binance, the main exchange where FDUSD is listed. In particular, Bitcoin (BTC) has also reached almost 100,000 against FDUSD. The token stabilized around $ 0.98 to $ 0.96 later, still trading below its supposed price presenter.
The sudden price action occurred while Coindesk earlier Wednesday, reported that some of the Trueusd Stablecoin reserve assets were blocked in illiquid investments, according to documents. The founder of Tron, Justin Sun, has bail out the issuing company. First Digital Trust, a trust company affiliated with First Digital, was appointed to manage Tusd reserves.
“FIRST Digital Trust (FDT) is actually insolvent and unable to make customer fund buyers. I strongly recommend that users take immediate measures to secure their assets,” said Tron Justin Sun founder in a post on Wednesday X.
First Digital refuted allegations in a post X, saying that “the first digital is completely solvent” and that “each dollar backing fdusd is completely, secure, safe and taken into account with us supported in T-Bills.”
“This is a Typical Sun smear campaign to try to attack a competitor of his business. As we have said to the Coindesk journalist, we have not yet had the opportunity to defend ourselves and instead of leaving the Tusd matter to be treated in court in court according to the company,” said the company. “FDT will pursue legal action to protect its rights and reputation.”
The latest FDUSD monthly reserve report has shown that the $ 2 billion in reserve assets were mainly held in the invoices of the US Treasury and a lesser part in repo facilities and fixed deposits.
Update (April 2, 17:15): FDUSD PRICE ACTION.
