Huobi opened trading of FTX Users' Debt token
The platform led by Justin Sun has listed cryptocurrency FTX Users' Debt, which are token bonds issued, according to the developers, on behalf of creditors of the bankrupt exchange
Cryptocurrency exchange Huobi has launched trading of the FTX Users' Debt (FUD) token. Deposits and spot trading in cryptocurrency became available on Feb. 5 and withdrawals on Feb. 6. FTX Exchange is not affiliated with the issuance or distribution of these tokens.
FUD cryptocurrency was issued on the decentralized Debt DAO platform, which positions itself as a debt marketplace for the DeFi sector. Last July, the project raised $3.5 million in a funding round led by investment firm Dragonfly Capital.
Perhaps not coincidentally, the name of the token coincides with another acronym well-known in the crypto market - FUD (an acronym for "Fear, Uncertainty and Doubt"). This term usually refers to a tactic used to talk about something in such a way as to make audiences unsure, doubt or even fear the subject.
FTX's Users' Debt is a token bond issued, according to the developers, on behalf of FTX creditors. As the project team wrote on Twitter, they will be launching 20 million $1 FUD tokens into circulation so far.
After FTX confirms the official amount of debt to creditors, DebtDAO will conduct a secondary issue of digital coins based on the actual amount of debt, and then - the distribute of the second and last batch of tokens to all FUD holders.
At the same time, FTX managers are trying to recover as much money as they can to cover the debt. In mid-January, it was reported that FTX was able to return more than $5 billion in various assets, with another $425 million in cryptocurrency held by the Bahamas Securities Commission. Exchange managers have also demanded that U.S. politicians and other recipients of donations from former executives of the site return these funds by February 28.
Following the launch of trading on Huobi, the value of the token momentarily rose to 114.99 USDT. As of 5:45 p.m., FUD is trading near the 60 USDT mark.
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