FTX warns against Justin Sun-backed FUD tokens

Bankrupt crypto speech FTX has warned its creditors against patronizing unauthorized indebtedness tokens, including the Justin Sun-backed FTX User Debt Token (FUD).

FUD is simply a indebtedness token issued by Debt DAO with a assertion of issuing FTX users’ indebtedness arsenic a enslaved token. At launch, astir 20 cardinal FUD was minted, with plans underway to mint further tokens arsenic soon arsenic FTX confirmed the indebtedness amount.

FTX tweeted connected Feb. 17 to disassociate itself from the task and warned creditors against dealing with specified unauthorized schemes.

FTX via Twitter (17/02/2023)

However, Justin Sun had earlier backed the listing of FUD connected Huobi Global, claiming that FUD is simply a “top prime FTX indebtedness asset.”

Following the Huobi listing, FUD surged to a precocious of $115, which forced the DAO to see burning astir 18 cardinal FUD tokens.

The crypto assemblage had expressed pessimism astir the token arsenic the DebtDAO has nary website, and its Twitter relationship was past progressive connected Feb. 8.

Over the past 24 hours, trading activities person slowed for FUD arsenic its terms fell beneath $16, and its trading measurement sits astatine $231,300, according to Coinmarketcap data.

The station FTX warns against Justin Sun-backed FUD tokens appeared archetypal connected CryptoSlate.