The FDUSD stablecoin lost its peg to the dollar

[albon]

The FDUSD stablecoin lost its peg to the dollar after Justin Sun accused it of being insolvent, urged users to cut ties with the project and called on regulators to take swift action to prevent further major losses.


[TWEET]

First Digital Trust denied these allegations, describing Sun's speech as part of a smear campaign. They clarified that the dispute was with TUSD, not FDUSD, and stated that FDT would take legal action to protect its reputation. $FDUSD is currently trading at $0.9804


[TWEET]

The lesson here is that any beginner should diversify their funds across several stablecoins, not holding everything in a single stablecoin, to avoid any problems from depegging risks.

Which stablecoins do you prefer, and do you prefer centralized or decentralized stablecoins? What do you think of the Sun's influence on the market, and how much impact do influencers have on stablecoins?

SOURCE:
[1] https://decrypt.co/312984/fdusd-stablecoin-loses-dollar-peg-justin-sun

[Charles-Tim]

First Digital need to sue Justin Sun if what he said is not true. According to the news I read about it earlier, they said they will sue him. If what he said was false, it is very inappropriate.

The last time I checked the stablecoin, it has almost regained the peg price.

The lesson here is that any beginner should diversify their funds across several stablecoins, not holding everything in a single stablecoin, to avoid any problems from depegging risks.

USD is the best. But with how the banks are in my country, I prefer the stable coins. I prefer just USDT, USDC and DAI. But I know already that if anything happened to USDC, it will have effect also on DAI.

I do not like these new stable coins. Including USDE. But good that FDUSD has almost gain back its price.

[btcltcdigger]

Justin Sun .... that's the biggest clown in the crypto space (along side of some others i could name), but he just takes the cake. His closet is full of skeletons, yet he pretends to be some sort of moral high ground in this space.
He's the 1st one who's gonna manipulate the market to get it his way. He already did it many times with staking protocols. Came in last minute with hundreds of millions of dollars, just to dilute the rewards for us smaller guys

[sokani]

Justin Sun better be right with his accusation because with his level of education and exposure, I'd expect he knows the consequences of smearing a project/company. He's definitely going to be sued for it if wrong. Except, of course, the tweet did not originally come from him and was the handiwork of some miscreant who took control of his x account, which still has to be proved.

Which stablecoins do you prefer, and do you prefer centralized or decentralized stablecoins?

I just go with the stablecoin available with the coin I want to trade and I don't hold them for long. But maybe this is going to change during the bear season.

[GreatArkansas]

TerraClassicUSD version 2?
Now, these times, even the market is dumping, sometimes it's best because it's really helping to clean the market like this FDUSD. For example, if it's really insolvent, then for sure, expect the FDUSD stablecoin will continue to depeg and could follow TerraClassicUSD.

[Rustam Meraj]

Problem with FDUSD losing its value compared to dollar shows how important it is to spread out your investments in different stablecoins. For me I also prefer stablecoins that are not controlled by single company because they are more open and secure. These kinds of stablecoins like DAI or USDC are less likely to have problems or be controlled by one person. When it comes to how much influencers can affect market they can have big impact especially on smaller projects. But it is crucial to separate facts from opinions and listen to many different sources before making investment decisions. Having varied portfolio can help reduce risks that come with stablecoins and changes in market.

[Catenaccio]

People are mostly careless and ignore educational resources and warnings about risk of stable coins. It's not a first time ever in stable coin history, there is a stable coin depeg and it has happened many times with a most famous catastrophe is Terra stable coin UST.

In Bitcoin forum, there are many topics about stable coins to warn newbies about risk. The following topic is my topic about stable coin with no intention than warning risk of stable coin.

Tether minted more USDT.

This report can be a stronger warning with more data.
Stable coins: a deep dive into valuation and depegging

Another educational and warning topic, that is old as it was published in 2019. PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets. 6 years and there are many people who still are not fearful about stable coins.

[OmegaStarScream]

And... it's back to normal, or at least almost is.

Isn't FDUSD an indirect-attempt of Binance's to get into Stablecoins (after BUSD)? I cannot find any articles anymore, but I believe they're somehow connected and if that's indeed the case, I doubt it would be insolvent, not at the current marketcap anyway.

[cryptoaddictchie]

TerraClassicUSD version 2?
Now, these times, even the market is dumping, sometimes it's best because it's really helping to clean the market like this FDUSD. For example, if it's really insolvent, then for sure, expect the FDUSD stablecoin will continue to depeg and could follow TerraClassicUSD.

Thats true. If they are deemed clean they would explain, about the allegations of Justin, but since he mentioned it is fact, then this is scary for those who got that stablecoin, it could mean a terra version 2.0 happened few years back one of the biggest incident for depeg.

Not familiar with this stablecoin but was it the one also being usef on Binance launchpool?

[Zwei]

TerraClassicUSD version 2?
Now, these times, even the market is dumping, sometimes it's best because it's really helping to clean the market like this FDUSD. For example, if it's really insolvent, then for sure, expect the FDUSD stablecoin will continue to depeg and could follow TerraClassicUSD.

not really, TerraUSD was an algorithmic stablecoin backed by a ponzi, while each 1 FDUSD is supossed to be backed by $1 in reserves... so unless they are lying, it's very unlikely to happen.

[LogitechMouse]

---
The lesson here is that any beginner should diversify their funds across several stablecoins, not holding everything in a single stablecoin, to avoid any problems from depegging risks.

Which stablecoins do you prefer, and do you prefer centralized or decentralized stablecoins? What do you think of the Sun's influence on the market, and how much impact do influencers have on stablecoins?

That is, if they're holding stablecoins. What I believe is that, most of the investors right now are holding volatile cryptocurrencies like Bitcoin and other altcoins hoping to make some profit. They will not make money holding stablecoins so they'd rather put it into volatile assets. They don't know that holding stablecoins will make you safe during crashes and at the same time, will give you an opportunity to scoop up some coins if a crash happens.

As for the stablecoin, many don't like Tether because of the many controversies of it in the past, but I still believe that it's the most used stablecoin so I'll prefer using it. Aside from USDT, I prefer USDC as well just because it's from Coinbase, not a supporter of Coinbase though, but many also accepts USDC. As for Justin Sun, he's the greatest clown the crypto space has ever have since Roger Ver and McAfee. Let him do what he wants to do, but with this one, it would be better if his allegations are backed up with evidences.

TerraClassicUSD version 2?

Nope. I just look at FDUSD's price and it's slowly regaining it's price already. Currently at $0.995.

[tabas]

It's back now to $0.9945

The lesson here is that any beginner should diversify their funds across several stablecoins, not holding everything in a single stablecoin, to avoid any problems from depegging risks.

People find it too hassle if they are going to keep their wealth in several stablecoins. But I agree with the idea that this is going to lessen this kind of scenario if ever one of them have depegged in the moment that you need them.

Which stablecoins do you prefer, and do you prefer centralized or decentralized stablecoins?

I think only three are what I am going to use, USDT, USDC and DAI.

What do you think of the Sun's influence on the market, and how much impact do influencers have on stablecoins?

It might affect a bit temporarily but in the long run when these accusations from him proven to be wrong, everything is going to be back normal and vice versa.

[hugeblack]

Which stablecoins do you prefer, and do you prefer centralized or decentralized stablecoins? What do you think of the Sun's influence on the market, and how much impact do influencers have on stablecoins?

Diversifying their investments and using stablecoins? It's best to avoid stablecoins, as they are not an investment and are not an alternative to fiat currencies. They should only be used for trading or to store liquidity for a short period (maximum 6 months). You shouldn't diversify or purchase more stablecoins, as they are not investments, but rather financial instruments to stabilize the price at $1.

[Mpamaegbu]

And... it's back to normal, or at least almost is.

Isn't FDUSD an indirect-attempt of Binance's to get into Stablecoins (after BUSD)? I cannot find any articles anymore, but I believe they're somehow connected and if that's indeed the case, I doubt it would be insolvent, not at the current marketcap anyway.

I don't know why I never liked using FDUSD, though I mistakenly converted my Bitcoin to it once and I hurriedly sold it off on P2P within minutes of that. I don't feel safe leaving it in that token. It's a fear feeling I can't explain anyway. I like the idea of USDT. BUSD was easier for me because of its very negligible withdrawal charges until life happened to it. As for FDUSD, I'm a distant observer of it.

[avp2306]

First Digital need to sue Justin Sun if what he said is not true. According to the news I read about it earlier, they said they will sue him. If what he said was false, it is very inappropriate.

The last time I checked the stablecoin, it has almost regained the peg price.

The lesson here is that any beginner should diversify their funds across several stablecoins, not holding everything in a single stablecoin, to avoid any problems from depegging risks.

USD is the best. But with how the banks are in my country, I prefer the stable coins. I prefer just USDT, USDC and DAI. But I know already that if anything happened to USDC, it will have effect also on DAI.

I do not like these new stable coins. Including USDE. But good that FDUSD has almost gain back its price.

There's no need to do that. Since if they believe their stable coin is strong then they should prove Justin Sun wrong. They must take those things said by Sun as challenge and don't be an onion skin to sue them easily because those bad actions they plan do to might not bring positive impact for their project.

Same as you I don't like other stable coins especially those new because we don't know how reliable they are and just want to stick with top stable coins because they are tested strong for many years.

Somehow good to see that they are almost back at $1 and I guess the action made by Sun help them to gather lots of attention on crypto scene.

[DubemIfedigbo001]

Justin Sun better be right with his accusation because with his level of education and exposure, I'd expect he knows the consequences of smearing a project/company. He's definitely going to be sued for it if wrong. Except, of course, the tweet did not originally come from him and was the handiwork of some miscreant who took control of his x account, which still has to be proved.

losing control of handles is just a common excuse these bigger boys in the building uses to escape the consequences of their actions. Have never believed those lies any day, when your handle is compromised, there are efforts you make immediately to prevent it from harming your audience. This statement too is typical of Sun, he always brings up attacks here and there, so his account being compromised would not be believed. let's wait for the outcome of the court sessions between him and the accused since they are going to sue him.

Which stablecoins do you prefer, and do you prefer centralized or decentralized stablecoins?

I just prefer the USDT, have never had any reason to seek an alternative since I don't really hold stable coins, USDT faced similar attacks late last year, when there was news everywhere that it wouldn't exist past 31st December, but it's still in business today. If the FDT is clean, they would bounce back and they are almost there from my checks now currently at $0.9927, and this Sun guy needs be taught a big lesson against messing with competitors' brands.

[BenCodie]

Stablecoins can lose their peg when liquidity takes a sudden hit. It's concerning, but sometimes it happens.

And... it's back to normal, or at least almost is.

Isn't FDUSD an indirect-attempt of Binance's to get into Stablecoins (after BUSD)? I cannot find any articles anymore, but I believe they're somehow connected and if that's indeed the case, I doubt it would be insolvent, not at the current marketcap anyway.

That would be surprising, as Binance/CZ and Justin Sun definitely worked together during both of their uprising periods.

[dkbit98]

Nothing new in cryptocurrency world, this is just one more stablecoin circus show.
I was always suggesting to people to stay away from ALL stablecoins, except for temporary trading instead of fiat currency.
What is happening with FDUSD, TUSD will happen tomorrow with most, if not all stabelcoins.
No need for me to talk more about clown Justin Sun, I am sure he has some hidden motives in this shitshow.

[albon]

Update:

Binance, which holds 94% of the total supply of the currency, reassured its users regarding FDUSD reserves during in this [article].

The platform conducted two reviews of the stablecoin's reserve data. As of March 1st, FDUSD reserves amounted to $2.05 billion. These securely held reserves exceed the circulating supply, proving that FDUSD maintains a 1:1 redemption ratio with the dollar. Binance also announced that it will continue to closely monitor the currency with another review planned.

SOURCE: https://coinfomania.com/binance-reassures-users-on-fdusd-reserves-amid-controversy/

[hugeblack]

Update:

Binance, which holds 94% of the total supply of the currency, reassured its users regarding FDUSD reserves during in this [article].

The platform conducted two reviews of the stablecoin's reserve data. As of March 1st, FDUSD reserves amounted to $2.05 billion.

If we were in a highly regulated environment, Justin Sun's statement would be considered market manipulation.

Overall, the FDUSD stablecoin is better than many unknown low-marketcap stablecoins, assuming Binance maintains a 1:1 peg and  trading volumes are still low, but there are better options.

+ It's always best not to treat stablecoins as an investment or a good long-term investment.