March 19, 2024

Huobi to list FTX debt-pegged FUD token

Article Reading Time:
2 minutes.

Huobi to list FTX debt-pegged FUD token

Large Chinese exchange Huobi Globalannounced the placement of the debt of users of the collapsed FTX crypto exchange in the form of the FUD token (FTX’s Users’ Debt) for spot trading. Transactions with FUD, the exchange promises, will be available on Monday, February 6th.

The bond token for high-grade FTX lenders will have to be issued by DebtDAO. Emission will be 20 million.

“FTX Lenders Notified 2/7 DebtDao ofthe amount of debt is about $100 million. With the initial offer and circulation of 20 million FUD tokens, which is 2% of FTX’s debt, each token is valued at $1,” representatives of the platform specified.

FTX will first double check its databases andwill confirm the official amount of debt to creditors, then DebtDAO will conduct a secondary issue of digital coins and distribute the second and final batch of tokens to all FUD holders.

According to DebtDAO rules, allFUD holders who will have at least one token before the secondary offering will receive an additional 2 FUD. After the distribution, DebtDAO will perform a debt buyback for users who have FUD.

Earlier, FTX representatives announced their desire to exclude their Turkish division from the bankruptcy case.