Huobi, a cryptocurrency exchange, said on February 5 that it will offer FUD, the cryptocurrency of DebtDAO, a peculiar project with few fans. Starting at 12:00 UTC on February 5, the exchange will support the FUD/USDT trading pair. Users may currently deposit FUD on the exchange, and the withdrawal feature will be available on February 6 at 12:00 UTC.
According to Huobi, FUD stands for “FTX Users’ Debt,” which is a TRC-20 token generated by DebtDAO on the TRON network. FUD is a token that symbolizes the amount of money owing to DebtDAO by FTX, which the project says is in the “tens of millions of dollars” but does not specify or offer evidence for.
At debut, 1 FUD will be worth 1 USD, with a quantity of 20 million FUD available. Depending on market conditions, the price of FUD at this moment may range between 1 USD and 5 USD. DebtDAO claimed that after FTX formally acknowledges the debt or creditor data is public, the project would execute a second token sale with a value matching to the debt and airdrop it to FUD holders, bringing the FUD price to the range of 0 USD to 1 USD.
If FTX’s debt to DebtDAO reaches $60 million, the project will produce an extra 40 million FUD on top of the 20 million already generated. Each FUD bearer will receive two extra FUD at that moment.
“The listing of FUD on a respected exchange like Huobi is a clear evidence that the crypto market is growing in a healthy manner,” Huobi Advisor Justin Sun said. Demand for FUD reflects market confidence and a positive vote of confidence in crypto.
Despite this, the crypto community on Twitter is plainly dubious about this new initiative, since its Twitter appears to have been founded in February 2023 and has less than 100 followers. DebtDAO’s profile photo is of former FTX CEO Sam Bankman-Fried, who was detained by Bahamas police in mid-December of last year.
Some Twitter users contend that tokenizing a claim in a firm in bankruptcy is a breach of securities rules. Huobi has been consistently contentious since being purchased and taken over by Justin Sun, listing “strange” crypto projects, most notably Pi Network (PI) in December, despite the fact that this project currently has no mainnet and issue tokens.
According to the platform’s fundraising paperwork, the bankruptcy debt collecting industry is valued up to $ 20 billion.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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