FTX, a defunct cryptocurrency exchange, has cautioned its creditors to stay away from unlicensed debt tokens like the Justin Sun-backed FTX User Debt Token (FUD).
FUD is a debt token that Debt DAO has released with the promise of issuing the debt of FTX users as a bond token. Approximately 20 million FUD were created at launch, and it is planned to create more tokens as soon as FTX confirms the debt amount.
On February 17, FTX tweeted to express its distancing from the project and to caution creditors from engaging in unlicensed business practices.
Justin Sun, however, had previously supported the listing of FUD on Huobi Global and called it a “top-quality FTX debt asset.” FUD reached a high of $115 after the Huobi listing, forcing the DAO to think about burning around 18 million FUD tokens.
Due to DebtDAO’s lack of a website and the fact that its Twitter account was last updated on February 8, the cryptocurrency community has voiced doubt regarding the token.
According to CoinMarketCap data, trading activity for FUD has reduced over the past day as its price has dropped below $16 and its trading volume is currently $231,300.
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