Binance Launchpool’s Critical Error Affects FDUSD Circulation

In a recent development, Binance’s OMNI Launchpool has reported deposits of the FDUSD stablecoin that have surpassed its officially reported total circulation by a significant margin. The platform initially showed deposits totalling $6.37 billion in FDUSD, which sparked intrigue among observers. This is notable, considering the stablecoin’s reported market capitalization is just below $4 billion.

Binance Clarifies and Recovers

According to CoinGecko data, various entities mint the FDUSD stablecoin on the Ethereum blockchain and Binance Smart Chain, with current supplies of $3.8 billion and $180 million, respectively. Initially, Binance figures indicated an unexplained $2.4 billion surplus on FDUSD. This raised suspicion about the assets’ backing, integrity, or even OMNI Launchpool’s conduct of fair operations.

In response to increasing concerns, Binance quickly addressed this discrepancy blaming it on a display error. The exchange explained that their initial statistics were inaccurate and immediately corrected them. The updated information shows that Launchpool has $3.18 billion in the form of FDUSD.

Following the revelation, the stablecoin briefly depegged to 98 cents but has since recovered its $1 value. Nevertheless, it quickly rebounded back to $1. First Digital recently became part of the Sui layer 1 blockchain, representing a huge milestone as this is its first native stablecoin on this network. In light of what had happened, Binance put out a statement to reassure platform users about addressing such matters with speed:

“We appreciate being notified of this situation; we assure you we acknowledge the problem with wrong FDUSD and BNB amounts appearing on our Launchpool page; our tech team has since handled this display error promptly; We are committed to rectifying all distributions and consequences arising from them this might cause us in their entirety so you can be certain your finances are safe.”

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