FDUSD, a $2.5 billion stablecoin, briefly depegged by 10% after Tron founder Justin Sun called its issuer, First Digital Trust, insolvent.
“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,” Sun posted on X.
The stablecoin experienced immediate outflows, with more than $200 million of its total market capitalization being erased in just 20 minutes. The token has since recouped most of its losses and is trading back at $0.98.
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