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FTX warns against Justin Sun-backed FUD tokens FTX warns against Justin Sun-backed FUD tokens Christian Nwobodo · 2 years ago · 1 min read
News ▸ ▸ Tokens

FTX warns against Justin Sun-backed FUD tokens

Justin Sun approved the listing of FTX User Debt (FUD) token on Huobi Global claiming that FUD is a "top quality FTX debt asset.

Christian Nwobodo
Feb. 17, 2023 at 5:22 pm UTC
1 min read
Updated: Feb. 17, 2023 at 5:35 pm UTC
FTX warns against Justin Sun-backed FUD tokens

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

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.

FTX via Twitter (17/02/2023)
FTX via Twitter (17/02/2023)

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.

Mentioned in this article
FTX HTX Justin Sun
Posted In: , Exchanges, Featured, Tokens
Author

Christian Nwobodo

Journalist at CryptoSlate

Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.

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FTX

Exchange Company in Caribbean

FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.

More about FTX

HTX

Exchange, Mining Pool, Venture Capital Company in Asia

Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.

More about HTX

Justin Sun

Founder at TRON

Justin Sun has carved a name for himself as a leading figure in the blockchain sector.

More about Justin Sun
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