Prominent crypto exchange platform Huobi has listed a new altcoin project backed by the debt of FTX users, according to a new company announcement.
Huobi says it is supporting the token FTX Users’ Debt (FUD) with the approval of Justin Sun, high-ranking advisor to the exchange and the founder of Tron (TRX).
Crypto exchange FTX went bankrupt last year. Its executives were accused of defrauding investors and mishandling billions of dollars worth of user funds. According to crypto creditor and FUD issuer DebtDAO, the tokens will debut with a price tag of $1 and a supply of 20 million, representing about 2% of FTX’s debt.
However, DebtDAO notes that the token’s supply will grow and be doled out to holders of FUD once FTX confirms more of its debt.
“DebtDAO has been notified of a debt amount of approximately $100 million by FTX creditors. With an initial supply and circulation of 20 million FUD tokens, representing 2% of FTX’s debt, each FUD token has a value of $1.
Once FTX confirms the actual debt amount through its database or official disclosure, DebtDAO will issue additional tokens proportional to the confirmed debt amount and distribute them through an airdrop to all FUD holders.”
According to Sun, who became a part of Huobi in 2022, the listing of FUD on respected crypto exchange networks is a sign that the public’s opinion on digital assets may be changing.
“The listing of FUD Token on reputable exchanges like HuobiGlobal is a clear indication that the crypto industry is moving in a positive direction. The demand for FUD Token is a sign of confidence in the market, and a vote of support for a positive attitude towards crypto.”
FUD is currently trading at $64 according to data from Huobi.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Jevanto Productions