Newest "FUD" Token Introduced on Crypto Exchange Huobi, Backed by FTX Users' Debt

According to a recent corporate release, renowned cryptocurrency exchange Huobi has launched a new altcoin project supported by the debt of FTX customers. According to Huobi, Justin Sun, a prominent consultant to the exchange and the creator of Tron, has given his blessing for the adoption of the token FTX Users' Debt (FUD) (TRX).

Last year, the crypto exchange FTX filed for bankruptcy. Its officials were charged with cheating investors and mismanaging user funds totaling billions of dollars. The tokens will launch with a price tag of $1 and a supply of 20 million, equivalent to around 2% of FTX's debt, according to crypto creditor and FUD generator DebtDAO.

DebtDAO points out that as soon as FTX verifies more of its debt, the token's supply will increase and be distributed to FUD holders:

“DebtDAO has been notified of a debt amount of approximately $100 million by FTX creditors. With an initial supply and circulation of 20 million FUD tokens, representing 2% of FTXs debt, each FUD token has a value of $1. Once FTX confirms the actual debt amount through its database or official disclosure, DebtDAO will issue additional tokens proportional to the confirmed debt amount and distribute them through an airdrop to all FUD holders.”

Sun, who joined Huobi in 2022, believes that the presence of FUD on reputable cryptocurrency exchange networks is evidence of a potential shift in the public's opinion of digital content.

“The listing of FUD Token on reputable exchanges like HuobiGlobal is a clear indication that the crypto industry is moving in a positive direction. The demand for FUD Token is a sign of confidence in the market, and a vote of support for a positive attitude towards crypto.”

According to Justin Sun, everyone would gain from the FUD token.

A project called Debt DAO, which claims to be releasing FTX users' debt as a bond token, FUD, on account of FTX creditors, is supported by Justin Sun, the creator of the exchange Huobi. Debt DAO said in a Twitter thread that FTX creditors had informed it of a debt of roughly $100 million. On February 5, cryptocurrency market Huobi made the FUD token tradable. FUD is a “high grade FTX debt instrument,” according to Sun, and the exchange will start allowing transactions of the token on February 6. After the airdrop, Huobi claims that DebtDAO will do a 1:1 debt repurchase for FUD holders.

The bond token would give FTX creditors a “new degree of liquidity,” according to Justin Sun, founder of Tron, and allow them to exchange their FTX debts on the market place. Sun claimed that the FUD token will “benefit everyone in the crypto industry.” Added him:

“This gives them [FTX creditors] greater control over their assets and opens up new opportunities for investment.”

ABOUT HUOBI

Huobi Global offers a comprehensive ecosystem for seasoned cryptocurrency traders and investors by enabling customers to buy, sell, stake, and borrow a wide variety of cryptocurrencies. The exchange hasn't been able to ensure regulatory compliance in significant areas, and new users might find the platform's abundance of tools and options confusing. More than 400 cryptocurrencies can be traded on Huobi Global, and the company frequently adds new assets to its marketplace.

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