FTX warns against Justin Sun-backed FUD tokens
Bankrupt crypto exchange FTX has warned its creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt Token (FUD).
FUD is a debt token issued by Debt DAO with a claim of issuing FTX users’ debt as a bond token. At launch, about 20 million FUD was minted, with plans underway to mint additional tokens as soon as FTX confirmed the debt amount.
FTX tweeted on Feb. 17 to disassociate itself from the project and warned creditors against dealing with such unauthorized schemes.
However, Justin Sun had earlier backed the listing of FUD on Huobi Global, claiming that FUD is a “top quality FTX debt asset.”
Following the Huobi listing, FUD surged to a high of $115, which forced the DAO to consider burning about 18 million FUD tokens.
The crypto community had expressed pessimism about the token as the DebtDAO has no website, and its Twitter account was last active on Feb. 8.
Over the last 24 hours, trading activities have slowed for FUD as its price fell below $16, and its trading volume sits at $231,300, according to Coinmarketcap data.