A recent altcoin launched on the exchange of crypto Huobi has exploded exponentially since its registration.
FTX User Indebtedness (UFD), based on Tron (TRX) and Huobi's first entry, aims to maintain its value with debt support from those who have lost funds on the crashed FTX crypto exchange.
The token is issued through debtdao, an organization that is not directly related to ftx. Fud is supposed to account for $1 of the debt, and had an initial offer of 20 million chips.
Tron founder and Huobi advisor Justin Sun described FUD as a “bond token” that is “set to benefit everyone in the crypto world.”
“FUD token provides creditors with a new level of liquidity, allowing them to trade their FTX debt on the open market. It gives them more control over their assets and creates new investment opportunities.
It was confirmed by an agreement provided by debtdao that the debt amounted to tens of millions of dollars. The early issue stage will sell the debt ftx at a discount. 1 fud = $1, initial fud issue and cash flow is $20 million. The correct price is 0 < 1fud [lower or equal to] 5USDT.
Once the FTX re-establishes the database or the FTX formally confirms the creditor's real debt, DebtDAO will issue a public offering of secondary savings based on actual debt and will issue largesse to all UFD holders, when the right price will be 0 < 1 UFD [less than or equal to] 1 USDT.”
Data on Huobi shows that on launch day, UFD went as low as $0.50, then blew up to $200. It's trading right now at $66.90 at the time we write.
In order to bring FUD back to what DebtDAO considers fair value, Sun announced that 18 million tokens had been burnt, providing data from the Tron blockchain.
Says Huobi,
“The initial total supply of FUD (FTX User’s Debt) was 20 million. And because subscriptions are so popular, the price of the fud was well above the recommended price after initiation (the recommended price is 0<1 fud [less than or equal to] 5 usdt). Debtdao launched a proposal on February 6, and after talking to the community, decided to destroy 18 million fud chips.
Post-demolition, the total issue will become 2 million fuds and change from the initial 1 fud=1 usd equivalent claim to 1 fud=10 usd equivalent claim with an additional early bird airdrop value, and the recommended fud price ranges from 0<1 fud [less than or equal to] 50 usdt following destruction. Existing UFD token holders do not need to do anything, and the value of the FUD token will be assessed ten times."