The FDUSD price on Binance dropped sharply after Justin Sun publicly warned about the potential payment inability of First Digital Trust (FDT) – the organization responsible for backing this stablecoin. According to market data, the FDUSD/USDT trading pair on Binance lost up to 11% of its value, causing FDUSD to fall to 0.89 USD, significantly lower than its 1 USD Peg.

FDUSD is a stablecoin issued by First Digital, a Hong Kong-based organization with a commitment to being 100% backed by real assets. However, after Justin Sun – the founder of TRON and an influential figure in the cryptocurrency industry – issued a warning, investor confidence in FDUSD significantly declined, leading to a depeg event on Binance.

This event raises concerns about the stability of FDUSD, especially in the context of the stablecoin market facing pressure from both legal regulations and financial risks.