cryptonews.net
Crypto exchange Huobi has launched trading of the FTX Users' Debt (FUD) token. Cryptocurrency deposits and spot trading are available from February 5, and withdrawals are available from February 6. The FTX exchange is not associated with the issuance or distribution of these tokens. The FUD cryptocurrency was released on the decentralized Debt DAO platform, which positions itself as a debt marketplace for the DeFi sector. Last July, the project raised $3.5 million in a funding round led by Dragonfly Capital.
As the project team wrote on Twitter, while they will put into circulation 20 million FUD tokens worth $1. After FTX confirms the official amount of debt to creditors, DebtDAO will conduct a secondary issue of digital coins based on the actual amount of debt, and then distribute the second and final batch of tokens to all FUD holders. In accordance with DebtDAO rules, all FUD holders who hold at least one token prior to the secondary offering will receive an additional 2 FUD. After the distribution, DebtDAO will buy back the debts in a 1:1 ratio from the FUD holders.
Of the leading crypto platforms, only Huobi has announced the start of trading of the FTX Users' Debt token so far. According to platform leader Justin SUN, the FUD token provides lenders with a new level of liquidity, allowing them to trade their FTX debt on the open market. He also added that this gives them more control over their assets and opens up new investment opportunities.
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