$FDUSD Depegs as Justin Sun Alleges Insolvency

Alpha Team
April 02, 2025

FDUSD Falters in Sun Feud

FDUSD Price Drops: FDUSD, a stablecoin from First Digital Trust, fell to $0.87 against USDT and $0.76 against USDC on Binance after Justin Sun, Tron’s founder, called the firm "insolvent." It later steadied at $0.98-$0.96. Sun’s X post sparked a 13%-24% dip from its $1 peg, fueled by fears tied to TUSD’s past $456M illiquid reserve crisis, which Sun bailed out.

First Digital Responds: First Digital Trust rejected Sun’s claims, stating, "We are completely solvent," with $2B in reserves, mostly U.S. Treasury bills, backing FDUSD. They accused Sun of a "smear campaign" and plan to sue for defamation. Previously, they managed TUSD’s reserves, denying wrongdoing in its $500M liquidity woes despite Sun’s loan to stabilize it.

Risks Raise Alarm: Bluechip rated FDUSD a C, warning its $2B reserves could cover parent debts in bankruptcy, risking holders. Sun urged users to "secure their assets immediately" on X. Amid TUSD’s past, where $456M-$500M in reserves got stuck, investors are advised to watch closely and move funds if worried. Read More.

️ On today's Top Picks:

👀 Hyperlane posts "Incoming" on X.
🎗️ Gitcoin launches GG23, donate from today to April 16th.
💸 GameStop $GME completes $1.5B raise to buy Bitcoin $BTC.
🛡️ Apple patches multiple zero-day vulnerabilities.

Read time: ⏰ 6 minutes

Crypto News

• ⭐️ First Digital's $FDUSD stablecoin depegs after Justin Sun alleges insolvency; First Digital denies allegations and says it will pursue legal action.

• Tether $USDT bought 8,888 Bitcoin $BTC worth ~$752M in Q1 2025; now holds 92,646 BTC worth ~$7.8B.

• Circle $USDC files for IPO; potentially valued at $4B to $5B; initial offering price range has not yet been determined.

• PumpFun deposits 65,284 Solana $SOL worth ~$8M to Kraken; deposited a total of 1,638,597 SOL worth ~$206M to Kraken in 2025.

• VanEck files to establish trust entity in Delaware for $BNB ETF; the first ETF in the US to track BNB, if approved.

• Bybit closes NFT marketplace amid weakening market for NFTs; Kraken also recently closed its NFT marketplace.

• Gemini & US SEC file joint motion to seek potential resolution to legal dispute over Gemini Earn; the SEC has recently withdrawn cases against Coinbase, OpenSea, Immutable, and others.

• Sumitomo Mitsui Financial Group, Japan's second-largest bank, plans to launch a stablecoin with Ava labs $AVAX & Fireblocks; to begin testing in H2 2025 & potentially launch in 2026.

Alpha

• Abstract launches The Captain Flash Badge; earn any amount of mXP on Captain and Co to be eligible.

• ⭐️ Hyperlane posts "Incoming" on X; to potentially launch TGE & airdrop soon.

• Mass launches liquidity mining & referral program; earn $MASS by spinning the MASS wheel, trading, completing quests, referring friends, & more.

• Fogo launches Flames (points); participate by staking PYTH, trading on Ambient, holding a Fogo Discord role, and/or engaging with Fogo X.

• ⭐️ Gitcoin launches Gitcoin Grants 23; donate from April 2nd to April 16th.

Airdrops

• Binance launches Kernel (Kelp) $KERNEL Megadrop; lock $BNB and complete Web3 Quests to earn an airdrop.

• PumpBTC launches $PUMP airdrop claim; Pump Points holders are eligible.

• Definitive launches $EDGE airdrop claim; Jumper, 0x (Matcha), ODOS, Hyperliquid, Photon, BullX, Banana Gun, & Drift users are eligible.

• ICYMI Weekly Airdrop Recap by Earndrop.

• ICYMI Kernel (Kelp) to launch $KERNEL airdrop claim in early April; airdrop eligibility & allocation checker is live.

Finance News

• US President Trump to announce tariffs on April 2nd; to go live on April 3rd.

• China restricts companies from investing in the US; restriction in response to US President Trump's tariffs.

• US President Trump imposes new sanctions on Russia; sanctions four Russian individuals, three Russian legal entities, and one dry cargo vessel.

• Ontario Premier Doug Ford says Canada will remove tariffs if the US does.

• Mexican President Sheinbaum says she will not impose tit-for-tat tariffs on the US.

• ⭐️ GameStop $GME completes $1.5B convertible note offering to buy Bitcoin $BTC; GameStop CEO Ryan Cohen recently shared a photo of himself with Strategy's $MSTR Michael Saylor.

• MetaPlanet $3350.T buys 160 Bitcoin $BTC for ~$13.4M at ~$83,600 per BTC; also recently bought 696 Bitcoin $BTC for ~$67.9M at ~$97,512 per BTC; now holds 4,206 BTC worth ~$356M.

• OpenAI raises $40B at $300B post-money valuation; led by SoftBank $9984.T with Microsoft $MSFT, Coatue, Altimeter, & Thrive also participating.

Security and Exploits

• North Korean cyber operatives expand reach beyond the US and target Europe; use fraudulent personas to secure remote jobs.

• ⭐️ Apple releases security updates patching multiple zero-day vulnerabilities; includes iOS, macOS, iPadOS, & Safari.

• Kaspersky discovers Google Chrome zero-day vulnerability; advises users to update Google Chrome and/or Chromium-based browser to the latest version.

Token Unlocks

• Sui $SUI / ~$145M / APR 01st
• ZetaChain $ZETA / ~$13M / APR 01st
• Ethena $ENA / ~$14M / APR 02nd
• Wormhole $W / ~$108M / APR 03rd
• Ethena $ENA / ~$63M / APR 05th
Sourced from Tokenomist

Funding

• Ambient raises $7.2M in Seed funding from several investors.

• Cambrian raises $5.9M in Seed funding led by a16z Crypto CSX.

• Mahojin raises $5M in Seed funding led by a16z Crypto CSX & Maelstrom.

• bAI Fund raises $1M in funding from Morph & Foresight Ventures.

• Zuitzerland receives ~$500K grant from Vitalik Buterin.

The Degen Farmer

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PROTOCOL	ASSETS	APY
Notional V3 (Ethereum)	PTUSDE26MAR2025	59.66%
Spectra V2 (Ethereum)	SLVLUSD	36.78%
SmarDex (Ethereum)	USDN	26.73%
Indigo (Cardano)	IUSD	26.16%
Cetus AMM (Sui)	USDCUSDY	18.29%
StakeDAO (Ethereum)	MIMDAIUSDC	17.40%
YieldFi (Ethereum)	YUSD	16.73%
Stream Finance (Ethereum)	USDC	15.95%

. . .

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That’s it for today’s edition! See you soon.

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