Huobi has reportedly announced it would list the FUD (FTX Users’ Debt) token on February 5, 2023. The early-bird issuance phase shall sell FTX the debt in a discounted format. While 1 FUD = $1, the initial FUD issuance and liquidity is reported to be 20 million. The contract or notarized proof of the debt would be reportedly published by DebtDAO at the right time.
Breaking the news, DebtDAO tweeted:
DebtDAO goes on to state that the notified debt amount of FTX creditors is $100 million. There is an initial supply and circulation of 20 million FUD tokens (i.e. 2% of FTX’s debt). After a confirmation comes from FTX about its actual debt amount via an official disclosure, DebtDAO would issue extra tokens.
DebtDAO would issue these tokens in proportion to the confirmed debt amount. Their distribution to all FUD holders would be done via an airdrop in a secondary public offering. Justin Suntron, founder, of Tron, also shared his views on the FTX debt token issuance by DebtDAO. Suntron tweeted:
Suntron states FUD token is exciting liquidity for FTX creditors, allowing them to “trade their FTX debt on the open market.” He explained the secondary public offering issuance of FUD via an illustration in a tweet:
DebtDAO is actively scouting for listing and circulation possibilities with prominent exchanges. Creditors with FTX debt above $10 million are advised to “contact DebtDAO for a debt audit and issuance, enabling the debt to circulate in the secondary market.”
FUD creditors are a highly cost-effective and prioritized FTX debt on the network, per DebtDAO. DebtDAO confirms it would publish the contract or notarized proof of the debt when the time is right.
But one Wassie Lawyer (@wassielawyer) claims Huobi listing FTX debt tokens is not a debt token but a securitization—deeming it to breach securities regulations. Wassie Lawyer tweeted.
