Justin Sun Backs FTX Debt Token ‚FUD‘
• Justin Sun, the founder of exchange Huobi, has put his name behind Debt DAO and its project to issue FTX users‘ debt as a bond token, FUD.
• The bond token will have an initial supply and circulation of 20 million, representing 20% of the notified FTX debt.
• After FTX confirms the debt amount through official disclosure, Debt DAO will issue additional tokens proportional to the confirmed debt amount.
Details About FTX Debt Token ‚FUD‘
Debt DAO has been notified of around $100 million in debt by FTX creditors and has issued 20 million FUD tokens valued at $1 each. After FTX confirms the debt amount through official disclosure, Debt DAO will issue additional tokens proportional to the confirmed debt amount. These tokens will then be distributed to FUD holders through an airdrop. For instance, if the debt amount confirmed by FTX is $60 million then Debt DAO will issue another 40 million FUD tokens in addition to the initial 20 million and holders of 1 FUD before the secondary public offering will receive an additional 2 FUDs from the airdrop.
Justin Sun’s Statement onFTX Debt Token ‚FUD‘
Crypto exchange Huobi listed the FUD token for trading on Feb 5th and Justin Sun said that it is a „top quality“ asset that would benefit everyone in crypto world by providing creditors with new levels of liquidity and enabling them to trade their debts on open market. Moreover, after an airdrop; DebtDAO will do a 1:1 debt buyback for FUD holders.
Issuance Of Contracts Or Notarized Proofs Of The Debt
Debt DAO will issue contracts or notarized proofs of the debts at an appropriate time and also urged FTX creditors with over $10 million in debts to contact them for a „debt audit and issuance“ so they can circulate their debts in secondary market.
In conclusion, Justin Sun’s backing of this project could potentially help many creditors get back their funds from FTX exchanges while also giving them opportunities to trade their debts on open market with new level of liquidity options provided by this tokenization process initiated by Huobi exchange under Justin Sun’s supervision.