TRON Inventor Announces New Altcoin: Everyone Stands!

TRON inventor Justin Sun announced a new token. The cryptocurrency in question will be listed on the Bitcoin and altcoin exchange Huobi, which Sun advises. However, the coin drew backlash from the community. Here are the details…

TRON inventor announces new altcoin

China’s leading crypto exchange Huobi Global said it will list the FTX’s Users’ Debt (FUD) coin, which stands for “FTX Users’ Debts,” for spot trading, starting this week. FUD is also an expression that indicates “fear, uncertainty and doubt” in the market. The business announced this development via its website earlier today. He noted that withdrawals for FUD will begin from Monday, February 6th.

FUD is a cryptocurrency issued by DebtDAO and will be controlled by this DAO. It is described as a bond token for the biggest creditors in the FTX crash. The value of 1 FUD coin is set at 1 dollar. In the first part of the sale, 20 million FUD will enter the market. After the amount of debts that FTX will pay off is confirmed by official channels and documents, DebtDAO will hold a second public offering. Afterwards, all FUD holders will receive coins via airdrop.

Users will “borrow” after airdrop

That is, the early payment phase will sell the debt to FTX at a discount. Specifically, one FUD will be equivalent to $1 and the initial liquidity of the FUD will be 20 million. Then, after FTX restores its database with debts or officially confirms the creditor’s actual debt, DebtDAO will conduct a secondary public offering based on the full amount of the debt. It will then send airdrops to all FUD holders.

According to DebtDAO’s rules, users who own one FUD coin before the secondary public offering will receive 2 more FUDs from the airdrop. After the airdrop, DebtDAO will do a 1:1 debt recovery for users with FUD. In addition, Huobi exchange stated that if there are no orders in the order book between 90 percent and 110 percent of the final price, all new market orders for buy or sell will be automatically canceled to avoid price slippage.

There are criticisms about the new token

This new coin brought to mind the GTX exchange announced by the founders of the bankrupt Tree Arrows Capital. This exchange was also planned to be aimed at bankrupt crypto companies. Just like the GTX, the backlash for the FUD coin was not slow. Some experts said the FUD would violate securities laws. He also argued that with this coin, all receivables cannot be distributed equally. That’s why he said this attempt was “lousy”.

Huobi investors will make adequate risk assessment when trading with the newly listed token. As we reported on Kriptokoin.com, FTX collapsed last November with over $9 billion in client funds. At its peak, the exchange was the second largest after Binance, with a valuation of $32 billion.