- Justin Sun endorses Debt DAO on behalf of affected FTX users and creditors
- Crypto exchange Huobi listed the “debt token” (FUD) for trading as of February 5
- Sun claims that the bond token, which he deems a “top quality FTX debt asset,” will bring benefits to all in the cryptocurrency industry.
Renowned founder of Huobi Global, Justin Sun, has announced a new token to his crypto exchange, Huobi. The token is under a crypto project called DebtDAO, which lets FTX creditors receive their debt as a bond token called FUD. The $FUD token was listed on Huobi last February 4, which users can trade using USDT or USDD.
Sun tweeted the listing, stating that the bond token “represents the top quality FTX debt asset and is set to benefit everyone in the crypto world.”
He went on to post a thread regarding the purpose of this bond token, primarily to “provide creditors with a new level of liquidity, allowing them to trade their FTX debt on the open market.” The Huobi CEO claims that the affected FTX users can control their assets and broaden their investments.
DebtDAO confirmed that “tens of millions of dollars” are under the FTX debt. In his third thread, he said, “The early bird issuance phase will sell FTX the debt at a discount. 1 FUD = $1, FUD initial issuance and liquidity is 20 million. The fair price is 0 < 1FUD ≤ 5USDT.”
Once FTX revives the lost database or confirms the specific debt amount of the creditor, DebtDAO will create a “secondary public offering” that refers to the actual amount of the debt to all FUD holders.
DebtDAO also tweeted about the supply of FUD tokens. The initial collection will consist of 20 million tokens for 20% of the debt. Each token should cost $1.
While he explained the funds through “debt information,” the feedback was negative. Even after the elaboration, many see it as a nonsense investment. Several users commented on the thread as a new Ponzi scheme, citing that it is a “scam on another level.”
However, such words aren’t new to Justin Sun. After all, he is known by the crypto community as a controversial individual with the hottest takes regarding blockchain projects and investments.
FUD’s performance is still early to judge as of this writing, although it started at around $62.9 on February 5. The next day, it hit $117%, almost double its initial price. The current price looms around $65, and the value of FUD could significantly spike or continuously crash, depending on how much people believe in the purpose of DebtDAO.
Hot Takes Continue from Justin Sun
Justin Sun is also the CEO of Tron, a blockchain platform, and is known for his active presence on social media. He often tweets about cryptocurrency investments and market trends, and his opinions can sometimes be controversial.
Some of his tweets have caused significant price movements in the cryptocurrency market, leading to criticism and speculation about his motives. Despite this, Sun remains highly influential in the crypto industry and has a large social media following.
His recent tweet was about China welcoming back Bitcoin when the country realizes the real potential of cryptocurrency. It came as no surprise when his opinion polarized the community. Sun’s confidence in the FUD token shows his belief in DebtDAO’s purpose of giving back to the affected FTX users and creditors. However, it may backfire if there is no further proof to back up the claims of the project and the Tron CEO.
