• FTX has warned creditors against the Justin Sun-backed FTX User Debt (FUD) token.
• FUD was originally approved by Justin Sun and surged to a high of $115 at launch.
• Following its listing, the crypto community expressed pessimism about the token as trading activities have slowed for FUD.
FTX Warns Against Justin Sun-Backed FUD Token
FTX has warned its creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt (FUD). The debt token was 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. However, following its listing on Huobi Global due to approval from Justin Sun, the crypto community expressed pessimism about the token due to its lack of website or active Twitter account and trading activities have since slowed for FUD.
Justin Sun’s Approval of Listing
At launch, Justin Sun approved the listing of FTX User Debt (FUD) token on Huobi Global claiming that FUD is a „top quality FTX debt asset.“ Following this approval, FUD surged to a high of $115 which forced DebtDAO to consider burning about 18 million FUD tokens.
FTX Disassociates Itself From Project
In response to this project, FTX tweeted on Feb. 17th in order to disassociate itself from it and warned creditors against dealing with such unauthorized schemes.
Crypto Community Expresses Pessimism
The crypto community had expressed pessimism about the token as early as before its launch due to its lack of website or active Twitter account and after its pricing surge due to concerns surrounding its legitimacy and value proposition. Over the last 24 hours, trading activities have slowed for FUD as its price fell below $16 and volume sits at around $231k according to Coinmarketcap data.
In conclusion, it is important for investors interested in buying into any cryptocurrency related product or service should always do their own research in order to ensure safety and legitimacy before investing their money into any given project or asset class.