Ethereum

2024

Launchpool

<h2 class="wp-block-heading" id="overview-of-the-incident">Overview of the Incident</h2>
<p>In a startling disclosure, Binance’s OMNI Launchpool appeared to show FDUSD <a href="https://btc-pulse.com/bipartisan-push-for-stablecoin-legislation-senator/" rel="noopener noreferrer nofollow">stablecoin </a>deposits that greatly exceeded the currency’s known circulation totals. An initial figure displayed deposits amounting to $6.37 billion in FDUSD, which was particularly alarming given that the stablecoin’s market capitalization hovers just under $4 billion.</p>
<h2 class="wp-block-heading" id="details-on-the-discrepancy">Details on the Discrepancy</h2>
<p>The situation raised eyebrows across the cryptocurrency community. FDUSD is a popular stablecoin jointly minted on the Ethereum <a href="https://twitter.com/WuBlockchain/status/1779881191929446695" target="_blank" rel="noopener noreferrer nofollow">blockchain</a> and the Binance Smart Chain. According to latest updates from <a href="https://btc-pulse.com/paypal-usd-stablecoin-sees-circulation-drop-reports/" rel="noopener noreferrer nofollow">CoinGecko</a>, it should only have a circulating supply of $3.8 billion and $180 million on these respective platforms. The erroneously high number reported by Binance suggested an excess of approximately $2.4 billion FDUSD in circulation, triggering a wave of speculation regarding the stablecoin’s backing and the transparency of OMNI Launchpool’s operations.</p>
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   <p lang="en" dir="ltr">The deposit amount of FDUSD on Binance Launchpool far exceeds the issuance amount. The OMNI FDUSD pool has 197k participants, deposited exceeds 6 billion FDUSD. The official website of First Digital, the issuer of FDUSD, shows a circulation of only 3.97 billion.… <a href="https://t.co/egEK0BjfhJ" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/egEK0BjfhJ</a></p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1779881191929446695?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 15, 2024</a>
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<h2 class="wp-block-heading" id="binance-s-response">Binance’s Response</h2>
<p>After the discrepancy came to light, <a href="https://btc-pulse.com/binance-executive-run-nigeria-extradition-kenya/" rel="noopener noreferrer nofollow">Binance </a>acted swiftly to address the issue. They clarified that the anomalous figures were the result of a display error and confirmed that the actual amount of FDUSD deposited in the Launchpool was $3.18 billion. This quick correction helped <a href="https://btc-pulse.com/fijis-central-bank-issues-stark-crypto-investments/" rel="noopener noreferrer nofollow">stabilize </a>the situation but not before the stablecoin experienced a temporary depegging, falling to 98 cents before returning to its pegged rate of $1.</p>
<h2 class="wp-block-heading" id="market-reaction-and-recovery">Market Reaction and Recovery</h2>
<p>The news of the error caused a brief but notable fluctuation in FDUSD’s value, reflecting the sensitivity of the crypto markets to such discrepancies. Additionally, the recent integration of First Digital into the Sui <a href="https://btc-pulse.com/aelf-leads-ai-blockchain-shape-future-technology/" rel="noopener noreferrer nofollow">blockchain </a>as its first native stablecoin further complicated market dynamics, although it also marked a significant step forward for blockchain interoperability and stability.</p>
<h2 class="wp-block-heading" id="conclusion">Conclusion</h2>
<p>This incident at Binance Launchpool has highlighted the challenges and the importance of maintaining rigorous checks on digital asset reporting. The crypto community continues to monitor these developments closely, with a keen eye on ensuring transparency and integrity in the burgeoning field of digital finance.</p>

Error in FDUSD Circulating Supply Report Triggers Concerns on Binance Launchpool

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