On Friday, Debtors who control FTX’s official Twitter account warned the community to “be on the lookout for scams from entities claiming to be affiliated with FTX.” They also noted that neither FTX Debtors nor any entities related to the company have issued IOU crypto assets or “debt tokens.” The alert comes as a token called “FUD (FTX User Debt)” has been circulating on the Tron blockchain and is listed on Huobi.
FTX debtors use the official Twitter account to inform the community
FTX debtors who control the official FTX Twitter account are warning the community about entities claiming to be associated with the now defunct cryptocurrency exchange. The company has filed for Chapter 11 bankruptcy, and the restructuring team and debtors often use FTX’s official Twitter account to notify the community of updates. On February 17, 2023, debtors issued a warningindicating that the bankrupt company has not issued any debt tokens.
“FTX Debtors remind stakeholders to be on the lookout for scams from entities claiming to be affiliated with FTX,” the bankrupt exchange’s official Twitter account said on Friday. “FTX debtors have not issued any debt tokens and such offerings are not permitted.”
FUD token circulating on the Tron blockchain, listed on Huobi
As the exchange’s restructuring team and debtors warn the community about unofficial tokens, a cryptocurrency issued on the Tron blockchain called FUD, or FTX User’s Debt, has been circulating. Some information about the coin is available on coincko.com, and as of February 18, 2023, it is trading at prices between $15.05 and $16.88 per unit. On February 6, 2023, Huobi announcement which he had listed FUD, with an initial offer of 20 million.
The announcement also states that the “Debtdecided to destroy 18 million FUD. Tron founder Justin Sun discussed the project in detail on Feb. 4, 2023, noting that the “bond token represents FTX’s premier debt asset and stands to benefit everyone in the crypto world.” Coingecko.com does not list a circulating supply for the FUD token, and Tronscan shows that there is currently 2,000,000 FUD tokens. Of this supply, 1,999,966 are hosted on Huobi, and there are only four unique holders, according to Tron Explorer.
According to Coingecko.com, Huobi is also the most active exchange, and in the last 24 hours, FUD recorded a trading volume of $213,072, mainly associated with tether (USDT). FUD reached an all-time high of $73.97 per unit on February 7, 2023, the day after its IPO, and it has since fallen 78%. The warning issued Friday by FTX Debtors and the official FTX Twitter account does not mention any specific token by name. It just provides the web portal link where people can get information about the bankruptcy and restructuring process on kroll.com.
What do you think of FTX’s warning about unofficial “debt tokens” and the recently launched FUD token? Let us know what you think about this topic in the comments section below.
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