FTX Warns Creditors: Justin Sun-Backed FUD Tokens are Unauthorized
• FTX has warned its creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt (FUD) token.
• At launch, about 20 million FUD was minted, with plans underway to issue additional tokens as soon as FTX confirmed the debt amount.
• Following the Huobi listing of FUD, trading activities have slowed and its trading volume sits at $231,300 according to Coinmarketcap data.
FTX Warns Against Unauthorized Debt Tokens
Bankrupt crypto exchange FTX has warned its creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt Token (FUD). FUD is a debt token issued by Debt DAO with a claim of issuing FTX users‘ debt as a bond token.
Minting of FUD Tokens
At launch, about 20 million FUD was minted, with plans underway to mint additional tokens as soon as FTX confirmed the debt amount. Justin Sun had earlier backed the listing of FUD on Huobi Global claiming that FUD is a „top quality FTX debt asset.“ Following the Huobi listing, FUD surged to a high of $115.
FTX Disassociates from Project
FTX tweeted on Feb. 17 to disassociate itself from the project and warned creditors against dealing with such unauthorized schemes. The crypto community had expressed pessimism about the token as the DebtDAO has no website and its Twitter account was last active on Feb 8.
Recent Trading Activities for FUD
Over the last 24 hours, trading activities have slowed for FUD as its price fell below $16 and its trading volume sits at $231,300 according to Coinmarketcap data.