An altcoin recently launched on crypto exchange Huobi has exploded exponentially since being listed.
FTX Users’ Debt (FUD), based on Tron (TRX) and first listed on Huobi, aims to maintain its value with the backing of the debt of those who lost funds on collapsed crypto exchange FTX.
The token is issued by DebtDAO, an organization that has no direct affiliation with FTX. FUD is meant to represent $1 of debt, and had an initial supply of 20 million tokens.
Tron founder and Huobi advisor Justin Sun described FUD as a “bond token” that 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 opportunities for investment.
It has been confirmed through a contract provided by DebtDAO that the debt is in the tens of millions of dollars. The early bird issuance phase will sell FTX the debt at a discount. 1 FUD = $1, FUD initial issuance and liquidity is 20 million. The fair price is 0 < 1FUD [less than or equal to] 5USDT.
After FTX restores the database or FTX officially confirms the actual debt of the creditor, DebtDAO will issue secondary public offering based on the actual amount of the debt and issue airdrops to all FUD holders, at which time the fair price will be 0 < 1 FUD [less than or equal to] 1 USDT.”
Data on Huobi shows that on the day of launch, FUD went as low as $0.50, before exploding as high as $200. It’s currently trading at $66.90 at time of writing.
In order to bring FUD back to what DebtDAO considers fair value, Sun announced that 18 million tokens had been burnt, providing data from the Tron blockchain.
Says Huobi,
“The initial total supply of FUD (FTX User’s Debt) was 20 million. And due to the high enthusiasm of user subscriptions, the FUD price was much higher than the recommended price after the opening (recommended price is 0<1 FUD [less than or equal to] 5 USDT). DebtDAO initiated a proposal on February 6, and after discussion with the community, decided to destroy 18 million FUD tokens.
After the destruction, the total issue will become 2 million FUDs and change from the initial 1 FUD=1 USD equivalent claim to 1 FUD=10 USD equivalent claim with an additional early bird airdrop value, and the recommended price of FUD will fluctuate between 0<1 FUD [less than or equal to] 50 USDT after the destruction. Holders of current FUD tokens do not need to do anything, and the value of tokens holding FUD will appreciate ten times.”
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Featured Image: Shutterstock/Quardia/Andy Chipus
