Have you heard of FUD (FTX User Debt)? This is a token that has recently made its debut on the Exchanges and has put many traders in FOMO. This token aims to compensate for some of the losses suffered by users harmed by FTX. This weekend, FUD has seen incredibly volatile price fluctuations, as well as controversy and phenomenal trading volumes. But what’s really behind this mysterious token? We tell you everything in this article.
What is the FUD token?
The acronym FUD now stands for “FTX User Debt”, a token representing the debts of FTX users. It was issued by DebtDAO on behalf of FTX creditors this weekend (February 4th). Its purpose is to reimburse a portion of the funds of customers who were victims of the scam orchestrated by Sam Bankman Fied.
In a nutshell, the project aims to issue FTX users’ debt in the form of bond tokens called FUD.
DebtDAO announced in a series of published tweets that the initial supply of the FUD token would be 20 million tokens, each worth $1. This represents 2 percent of the total FTX debt. DebtDAO also said that it has been informed of approximately $100 million in debt by FTX’s creditors. However, it will be able to issue additional tokens commensurate with the debt once FTX gives official confirmation. These tokens will then be distributed to FUD holders via an Airdrop.
In addition, DebtDAO said that FUD holders will have priority in asserting their rights to FTX debt.
Justin Sun, a character behind the FUD token?
“FUD Madness,” based on the Tron blockchain, has raised excitement on crypto marketplaces this week due to its price fluctuations. But the question arises: who is behind this project?
At the moment, no one knows who is behind it, let alone who is planning to pay off the debt of users. In any case, no connection between the FUD token and the bankrupt FTX Exchange has been established. Furthermore, there is no website or white paper describing the fundamentals of the project. Just a Debt DAO Twitter account.
Nevertheless, its quick listing on the Huobi Exchange, its development on the Tron blockchain, and frequent statements of support for the FTX Users Debt project suggest that Justin Sun has something to do with it.
Justin Sun, co-founder of Tron and owner of Huobi, has become a strong proponent of FTX Users Debt (FUD). His exchange platform reportedly even immediately listed the token within hours of its release (on February 5). According to Sun’s statements, FUD is a superior project that will benefit everyone in the cryptocurrency industry.
In addition, he said in a tweet that the bond token would provide FTX creditors with a “new level of liquidity” and allow them to trade their FTX debt on the open market.
The FUD token, between fascination and uncertainty
“FUD Madness,” a new token based on the Tron blockchain, has rocked the Exchanges this week with phenomenal price swings. Launched at one dollar, it soared to $113 earlier this week on February 5. In keeping with the basic vision of the project, an 18 million token burn recently took place!
Is this a serious project or just a scam? The concept of issuing tokens to reimburse customers harmed by a platform is not new in the cryptosphere. However, what differentiates the FUD project from others is the identity of those behind it. There is no website, nor whitepaper, that describes in detail the foundations of the project. This raises serious suspicions about its reliability.
Yet, despite these grey areas, the FUD token managed to rank among the top 100 tokens with a marketcap of $1.2 billion in just 72 hours of existence. While it is tempting to invest in it, it would be wiser to take the time to think carefully before jumping into the FUD adventure and wait for an official communication from FTX to form an opinion. So stay alert and vigilant!
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
