First Digital bought almost $ 26 million in Stablecoin payments after his FDUSD token lost the American dollar briefly after allegations of the insolvency of the founder of Thron Justin Sun.
The first digital USD (FDUSD) replaced on April 2, shortly falling only 0.87 USD after Sun claimed that First Digital was insolvent.
On April 4, the sun doubled down According to his allegations, claiming that the company has transferred over $ 450 million of customer funds to the entity from Dubai and that it violated the provisions regarding securities in Hong Kong.
Source: On Justin Sun
“FDT donated $ 456 million of his private care clients in Dubai without their authorization and has not returned the money yet,” said Sun.
Despite the claims, blockchain data from Etherscan can be seen First Digital honored about $ 25.8 million in redemption of FDUSD from the incident.
Redemption of fdusd. Source: Etherscan
“We are still processing glossy redemption post.
When users exchange fdusd for American dollars, the right amount of FDUSD is burned on Stablelecoin to keep PEG 1 to 1 from the American dollar and provide a circulating supply reserve.
Related: Wintermute transfers USD 75 million FDUSD from DEGEGS, in $ 3 million in arbitration capabilities
According to Sun, First Digital assured users that it is a solvent and that FDUSD remains fully supported and listed.
Source: The first number
“The first digital position positions: Justin Sun’s unfounded accusations do not divert attention from their own techteryx failures – Our Stablecoin FDUSD remains fully supported and solvent”, First Digital stated in April x April 3 post.
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Stablecoin Dephegs “Higher system risk” than Bitcoin failure
Stablecouins Deepeges constitute a “greater system risk” for cryptography than Bitcoin failure (BTC), because “Stablecouins are an integral part of liquidity, DEFs and user trust”, according to Grace Chen, CEO of Bitget.
DEGEGS Stablecoin can cause “cascading failures, such as the collapse of Terrausd in 2022,,” said Chen Cointelegraph, adding:
“The current transparency, quality and accountability among the leading issuers of Stablecoin are insufficient – the lack of full Tether controls, USDC exposure to banking risk and algorithmic fragility Stablecouins emphasizes the susceptibility of the market to the next department of department.”
“To reduce the risk, the market should enforce real -time audits, prioritize high -quality security, such as the US Treasurys, strengthen regulatory supervision and diversify the use of Stablecoin to reduce relying on several dominant players,” added Chen.
In May 2022, the terra ecosystem worth $ 40 billion collapsed during the day, erasing tens of billions of dollars of value. Algorithmic Stablecoin Terra, Terrausd (mouth), brought over 20% of the annual efficiency (APY) on the anchor protocol before its collapse.
When he lost his dollar dollar, reaching the lowest level of 0.30 USD, co -founder of Terraform Labs, took to Kwon to X (then Twitter) to share his rescue plan. At the same time, the value of Luna’s sister token – once the 10 best cryptocurrency projects by market capitalization – dropped by 98% to 0.84 USD. Luna traded north of USD 120 at the beginning of April 2022.
https://www.youtube.com/watch?v=abn8nvgdw34
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