[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Abhi [@0xAbhiP](/creator/twitter/0xAbhiP) on x 54.6K followers Created: 2025-04-02 16:01:57 UTC breaking down the FDUSD situation and how it impacts binance 👇 > justin sun publicly claimed first digital trust (FDUSD issuer) is insolvent, can't process client redemptions, immediately triggered chaos > FDUSD instantly lost its peg, panic selling spread rapidly, shaking confidence across crypto markets > binance directly impacted, holding ~$1.67B FDUSD reserves (111% coverage), reserves appear sufficient, but liquidity & redemption capability now questioned > severe credibility hit for binance, as FDUSD was heavily promoted as their safer stablecoin alternative after distancing from BUSD due to US regulatory pressure (early 2023) > BUSD was binance’s primary stablecoin, issued by paxos (regulated in US), widely trusted and integrated across binance ecosystem > in early 2023 SEC & NYDFS targeted paxos, labeling BUSD an "unregistered security," leading binance to gradually but decisively distance itself > binance phased out BUSD incentives, trading pairs, and promotional campaigns, pivoting aggressively toward alternative stablecoins like FDUSD, USDT, TUSD > compared to BUSD’s gradual, controlled exit, FDUSD’s crisis is sudden, severe, and far more damaging in short-term credibility and liquidity risks > FDUSD insolvency rumors risk renewed regulatory scrutiny, as authorities may question binance’s stablecoin due diligence and risk management practices again stablecoin trust remains extremely fragile, issuer solvency, transparency, and regulatory clarity are critical, yet often insufficient personally feel that binance urgently needs another reset on stablecoin strategy, this FDUSD incident could heavily impact overall trust & market sentiment if not quickly managed  XXXXXX engagements  **Related Topics** [$167b](/topic/$167b) [peg](/topic/peg) [chaos](/topic/chaos) [binance](/topic/binance) [fdusd](/topic/fdusd) [Post Link](https://x.com/0xAbhiP/status/1907463521178427853)
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Abhi @0xAbhiP on x 54.6K followers
Created: 2025-04-02 16:01:57 UTC
breaking down the FDUSD situation and how it impacts binance 👇
justin sun publicly claimed first digital trust (FDUSD issuer) is insolvent, can't process client redemptions, immediately triggered chaos
FDUSD instantly lost its peg, panic selling spread rapidly, shaking confidence across crypto markets
binance directly impacted, holding ~$1.67B FDUSD reserves (111% coverage), reserves appear sufficient, but liquidity & redemption capability now questioned
severe credibility hit for binance, as FDUSD was heavily promoted as their safer stablecoin alternative after distancing from BUSD due to US regulatory pressure (early 2023)
BUSD was binance’s primary stablecoin, issued by paxos (regulated in US), widely trusted and integrated across binance ecosystem
in early 2023 SEC & NYDFS targeted paxos, labeling BUSD an "unregistered security," leading binance to gradually but decisively distance itself
binance phased out BUSD incentives, trading pairs, and promotional campaigns, pivoting aggressively toward alternative stablecoins like FDUSD, USDT, TUSD
compared to BUSD’s gradual, controlled exit, FDUSD’s crisis is sudden, severe, and far more damaging in short-term credibility and liquidity risks
FDUSD insolvency rumors risk renewed regulatory scrutiny, as authorities may question binance’s stablecoin due diligence and risk management practices again
stablecoin trust remains extremely fragile, issuer solvency, transparency, and regulatory clarity are critical, yet often insufficient
personally feel that binance urgently needs another reset on stablecoin strategy, this FDUSD incident could heavily impact overall trust & market sentiment if not quickly managed
XXXXXX engagements
