Justin Sun recently tweeted that FDT, the company behind the FDUSD stablecoin, is bankrupt.

This caused FDUSD to drop sharply to $0.82 before making a slight recovery.

Binance holds $1.6 billion worth of FDUSD. For context, Binance and Justin Sun have a tense relationship.

Back during the SUI launchpool, Justin Sun deposited millions to farm SUI, but Binance blocked his attempt. That moment made it clear the two are not allies.

This situation shows how even stablecoins can be vulnerable when targeted by a powerful figure like Justin Sun.

So what should you do?

• Avoid keeping all your funds in one stablecoin • Consider spreading your assets across USDC, USDT, or others

Stay sharp, chads. This market is full of scam and volatility.

Diversifying stablecoin holdings is key to managing risk in volatile markets. The recent FDUSD incident underscores the importance of spreading assets across different stablecoins like USDC, USDT, and others. Stay vigilant and protect your investments wisely.