Permission-less debt market Debt DAO has issued FTX Users’ Debt (FUD) tokens on behalf of FTX collectors and crypto trade Huobi mentioned it might listing the token.
On Feb. 4, Debt Dao mentioned its FUD token would have an preliminary provide and circulation of 20 million tokens, with every token priced at $1, representing 2% of all FTX debt. The permission-less market added that it was notified of a debt quantity of roughly $100 million by FTX collectors.
Debt DAO added that it might create extra tokens when FTX confirms the precise debt and distribute the extra tokens by way of airdrops to FUD holders. The FUD collectors may have the primary proper to claim their proper on the debt.
Huobi Lists FTX Users’ Debt (FUD) Token
Debt DAO’s new FUD token has already generated some curiosity from crypto exchanges with Huobi taking the lead. Justin Sun said that the bond tokens represent “the top quality FTX debt asset and is set to benefit everyone in the crypto world.”
“FUD token provides creditors with a new level of liquidity, allowing them to trade their FTX debt on the open market. This gives them greater control over their assets and opens up new investment opportunities,” added Sun.
Malicious actors have already tried to benefit from the scenario by producing counterfeit FUD tokens on the Ethereum blockchain. Justin Sun warned that the precise token is just on the TRON blockchain.
Crypto Community Raises Questions
The new concept of issuing new tokens to cowl FTX prospects’ and traders’ losses is strikingly just like the one beforehand endorsed by the disgraced trade’s founder, Sam Bankman-Fried. Crypto dealer and TV host Ran Neuner suggested that FTX could possibly be restarted by issuing new FTT tokens and distributing them to creditors and investors.
Neuner added that customers could be made complete as all of the trade income would accrue to them. SBF mentioned the concept was a productive path for events to discover. Still, the initiative was closely criticized on the time because the crypto neighborhood described it as a Ponzi scheme.
FTX’s new CEO John Ray mentioned he’s open to restarting the crypto exchange.
It is price noting that there is no such thing as a relationship between the FUD token and the bankrupt FTX trade. Liquidators are nonetheless making an attempt to get well all of the property within the firm and decide the collectors.
Lawyers declare the corporate has recovered over $5 billion in liquid assets, however money owed are greater than $8 billion.
Disclaimer
BeInCrypto has reached out to firm or particular person concerned within the story to get an official assertion concerning the current developments, however it has but to listen to again.
