Bankrupt cryptocurrency exchange FTX has warned creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt Token (FUD).
FUD Debt DAO is a debt token that claims to issue FTX users’ debt as bond tokens. At launch, about 20 million of his FUD have been issued, and plans are underway to issue additional tokens once FTX confirms the debt amount.
FTX murmured It cut ties with the project on February 17 and warned its creditors not to deal with such unauthorized schemes.
However, Justin Sun has previously endorsed the listing of FUDs on Huobi Global, claiming that FUDs are the “highest quality FTX debt assets.”
After Huobi’s listing, FUD surged to $115, forcing the DAO to consider burning around 18 million FUD tokens.
DebtDAO has no website and its Twitter account was last active on February 8th, so the crypto community has been pessimistic about the token.
According to CoinMarketCap, the FUD price is below $16 and trading volume remains at $231,300, slowing trading activity over the past 24 hours. data.
