Huobi listed $FUD (FTX Users' Debt) on February 5, 2023. $FUD, a TRC-20 token created by DebtDAO on the TRON network, represents the amount of money owed to DebtDAO by FTX, which DebtDAO claims has a debt amount of approximately $100 million by FTX creditors. With an initial supply and circulation of 20 million FUD tokens, representing 2% of the debt amount, each FUD token has a value of $1. The token is trading at a price of over $60 on Huobi today.
However, the crypto community on Twitter remains skeptical about the initiative, as the Twitter account appears to have been recently created in February 2023 and has a low number of followers. Crypto twitter users also pointed out the $20 million accounts for 20% of the claimed debt amount, rather than 2%, but there is no response from DebtDAO. DebtDAO's profile picture features the bankrupt FTX's logo.
Some Twitter users have also raised concerns that tokenizing a claim in a bankrupt company may be a violation of securities laws as this can be viewed as a form of securitization.
FTX
Huobi
