Huobi listed FUD – the token of the “FTX debt collection” project DebtDAO

Huobi suddenly announced the listing of FUD, the token of the strange “FTX” debt collection project DebtDAO.

Huobi listed FUD – the token of the “FTX debt collection” project DebtDAO

On the morning of February 5, cryptocurrency exchange Huobi announced that it would list FUD, the cryptocurrency of DebtDAO, a strange project with few followers.

The exchange will support the FUD/USDT trading pair starting from 12:00 on February 5. Users can now deposit FUD on the exchange, while the function of withdrawing FUD will be opened at 12:00 on February 6.

According to Huobi, FUD stands for “FTX Users’ Debt,” a TRC-20 token on the TRON network issued by DebtDAO.

FUD is a token representing the amount of money FTX is owed to DebtDAO, which the project claims are up to “tens of millions of dollars” but does not specifically disclose or provide evidence.

At launch, 1 FUD will be worth $1, with an initial supply of 20 million FUD. The price of FUD may fluctuate between $1 and $5, depending on market conditions.

DebtDAO stated that once FTX officially confirms the debt or the creditor data is published, the project will conduct a second token sale with a value corresponding to the debt and further airdrop it to FUD holders when the FUD price is brought to the range from 0 to $1.

Assuming FTX’s debt to DebtDAO is $60 million, the project will issue an additional 40 million FUD to add to the 20 million previously generated. At that time, each FUD holder will receive 2 more FUD.

Even so, the crypto community on Twitter is skeptical about this new project, as Twitter looks like it was created in February 2023 with less than 100 followers. DebtDAO’s profile picture was of former FTX CEO Sam Bankman-Fried when he was arrested by Bahamas authorities in mid-December last year.

Some Twitter users argue that tokenizing a claim in a company that is in the process of bankruptcy is a violation of securities regulations. Since being acquired and taken over by Justin Sun, Huobi has been constantly controversial when listing “weird” crypto projects, notably Pi Network (PI) in December. However, this project still has no mainnet and issue tokens.

Ideas for creating a debt trading market on crypto platforms that went bankrupt in 2022 – like the FTX exchange and lending companies Voyager, Celsius, BlockFi, and Genesis – keep popping up. Notably, there is also a property rights exchange, started by two founders of Three Arrows Capital, Zhu Su and Kyle Davies, and is raising capital.

The platform’s fundraising documents claim that the bankruptcy debt collection market is worth up to $ 20 billion.

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