{"id":126338,"date":"2025-04-02T18:16:46","date_gmt":"2025-04-02T18:16:46","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126338"},"modified":"2025-04-02T18:16:46","modified_gmt":"2025-04-02T18:16:46","slug":"fdusd-stablecoin-depegs-following-insolvency-claims-by-justin-sun","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126338","title":{"rendered":"FDUSD stablecoin depegs following insolvency claims by Justin Sun"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe First Digital US dollar-pegged stablecoin (FDUSD) depegged on April 2 following claims of insolvency from Tron network founder Justin Sun, who said that the issuer of the tokenized fiat equivalent, First Digital, is insolvent.<br \/>\nFirst Digital responded to the claims by assuring users they are completely solvent and said that FDUSD is still fully backed and redeemable with the US dollar on a 1:1 basis.<br \/>\nThe firm also said that the ongoing dispute is with TrueUSD (TUSD), another stablecoin. The firm wrote in an April 2 X post:<br \/>\n&#8220;Every dollar backing FDUSD is completely secure, safe, and accounted for with US-backed Treasury Bills. The exact ISIN numbers of all of the reserves of FDUSD are set out in our attestation report and clearly accounted for.&#8221;<br \/>\nFirst Digital also indicated they would be taking legal action against Sun for making the claims on social media. &#8220;This is a typical Justin Sun smear campaign to try to attack a competitor to his business,&#8221; spokespeople for First Digital wrote.<br \/>\nFDUSD loses dollar peg: Source: CoinMarketCapRelated: SMBC, Ava Labs, Fireblocks sign MoU for stablecoin framework in Japan<br \/>\nProof of reserves: the answer to FUD, runs on the bank, and depegging?<br \/>\nProof-of-reserve audits are onchain cryptographic verifications that a custodian, crypto firm, or stablecoin issuer has the digital assets it claims to hold.<br \/>\nThese proof-of-reserve audits use zero-knowledge tech and Merkle Trees \u2014 a data structure used to verify onchain information \u2014 as an alternative to audit reports or attestations widely used in the crypto industry.<br \/>\nDespite proof-of-reserve technology not yet tracking liabilities against reserves, the system promises to be better than the current system of audits that do not use real-time, onchain data.<br \/>\nFirst Digital\u2019s audit report of reserves as of Feb. 28, 2025. Source: First DigitalTal Zackon, founder of the Tres Finance auditing and reporting platform, previously told Cointelegraph that current attestations and third-party audit reports only represent &#8220;snapshots&#8221; of reserves that can be manipulated, exploited, or misconstrued.<br \/>\nStablecoin issuers will likely need to adopt proof-of-reserve tools as the tokenized fiat equivalents become more integrated into global capital markets and critical financial infrastructure such as stock exchanges, escrow services, and clearinghouses.<br \/>\nThis integration will require stablecoin issuers to provide up-to-date, real-time data, which may need to be updated several times per minute as opposed to the monthly audit reports that are typically released by firms to attest to asset reserves.<br \/>\nMagazine: Justin Sun reignites HTX feud, India reconsiders crypto hate: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/fdusd-depegs-following-claims-justin-sun?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe First Digital US dollar-pegged stablecoin (FDUSD) depegged on April 2 following claims of insolvency from Tron network founder Justin Sun, who said that the issuer of the&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126338"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126338"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126338\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126338"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}