An altcoin that was recently launched on crypto exchange Huobi has skyrocketed exponentially since it was listed.
This altcoin has increased 40x
Based on Tron (TRX) and initially listed on Huobi, FTX Users Debt (FUD) aims to preserve its value by backing the debt of those who lost money on the crashing crypto exchange FTX. The token is issued by DebtDAO, an organization not directly affiliated with FTX. FUD represents $1 of debt and has an initial supply of 20 million coins. Tron founder and Huobi advisor Justin Sun described FUD as a “bond token” that “will benefit everyone in the crypto world.”
“The FUD token provides creditors with a new level of liquidity, allowing them to buy and sell their FTX debt on the open market,” they said in a statement. This gives them more control over their assets and opens up new opportunities for investment.’ it said. Then they added:
“The tens of millions of dollars in debt has been confirmed by a contract provided by DebtDAO. The early repayment phase will sell the debt to FTX at a discount. After restoring the FTX database or officially confirming the FTX creditor’s actual debt, DebtDAO will conduct a secondary public offering based on the actual amount of debt and issue airdrops to all FUD holders.”
Data on Huobi shows that on launch day, FUD dropped as low as $0.50 before exploding as high as $200. According to cryptokoin.com data, FUD is trading at $ 55.11. To bring FUD back to what DebtDAO considers fair value, Sun announced that 18 million tokens were burned by providing data from the Tron blockchain. Huobi said in a statement:
“The initial total supply of FUD was 20 million. Afterwards, due to the high enthusiasm of user subscriptions, the FUD price after launch was much higher than the suggested price. DebtDAO launched a proposal on Feb. 6 and after consultation with the community decided to destroy the 18 million FUD.
After the burn, the total output will be 2 million FUD and will change from the first 1 FUD=1 USD equivalent request to 1 FUD=10 USD equivalent claim with an additional early airdrop value. Existing FUD token holders do not need to do anything and the value of tokens holding FUD will increase tenfold.”
Burning will take place
Crypto exchange Huobi said it will burn 18 million FTX Users Debt (FUD) tokens later today as DebtDAO has risen to a much higher value than the suggested price, according to a February 7 statement. Debt DAO previously issued 20 million FUD tokens worth $1 each, representing approximately $100 million to FTX creditors.
However, the token rose to around $115 on Feb. 5, forcing the DAO to consider burning most of its token supply to bring its debt valuation to its ‘fair value’. According to CoinMarketCap data, the token is down over 26% and was trading at $55.11 at the time of writing.
The crypto community remains wary of the high-flying cryptocurrency. DebtDAO has no website and its official Twitter account was created earlier this month. Community members also pointed out that the Tron-based token has no affiliation with the bankrupt cryptocurrency exchange FTX.
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