Defunct crypto exchange FTX has warned the public of scam tokens in circulation by entities parading to be affiliated with the firm. The bankrupt firm debunked its involvement with the coin in a tweet on Friday, February 17.
FTX stated that the company’s debtors had not released any debt token, nor is it issuing it. It warned users to see such tokens as unauthorized, citing that its debtors have not made any official statements relating to debt tokens.
Justin Sun’s Huobi Issued FTX Debt Token
The statement released by FTX contrasts with Huobi Exchange’s issuance of an FTX debt token. The Justin Sun-led crypto exchange announced it would be listing an FTX User’s Debt (FUD) token on February 5, 2023, and is already issuing the coin.
Huobi claimed that FUD is a bond token issued by DebtDAO. The exchange stated that DebtDAO confirmed the coin is in “tens of millions of dollars.” The asset was only launched for spot trading and is not available for leveraged trading yet.
Huobi stated that DebtDAO would buy back the token from users after FTX confirms the actual amount its creditors owe the exchange. The trading platform noted that DebtDAO would issue a secondary public offering of the amount of FUD required to match the debt. It will then take the token’s price to 1 FUD = 1 USDT and repurchase them from users.
Huobi seems to love listing controversial tokens. It announced earlier in the year that it will list Pi, a token yet to launch its mainnet. Huobi then said it would consider if Pi will still remain listed in the platform after its mainnet launch.
FUD Rises Over 1500% from Launch Price
The FTX’s user token has seen a massive increase since its listing on February 5. Huobi announced it would launch the asset at a 1 FUD:1 USDT. The token rose to $200 and is still trading at a reasonable price after the second week of its market debut.
The token has dumped and is slightly above $15. The asset suffered a significant decline today after the tweet but has managed to hold the $15 price.
