Huobi exchange introduces FUD token to help FTX creditors

Huobi Global launched “FUD token” to help Crypto Investors who lost their money on the FTX exchange. Huobi & its owner Justin Sun facing criticism over possible securities law violations.

FUD token is a newly launched crypto asset, which is available on the Tron blockchain network. Currently, this token is available to trade on the Huobi Global crypto exchange. On 6 Feb 2023, Huobi promised to allow the FUD token holders to withdraw the FUD tokens from the exchange. The basic aim of this coin is to help the crypto investors, who lost their funds on the collapsed crypto exchange FTX. 

Debt DAO is the project team behind the FUD token and initially, they introduced 20 million FUD tokens in the supply and the value of each FUD token is equal to $1. On behalf of the total FTX debt amount, Debt Dao will insert more circulation of FUD tokens in the market, in addition to the 20 million supply. 

2/7 #DebtDAO has been notified of a debt amount of approximately $100 million by FTX creditors. With an initial supply and circulation of 20 million FUD tokens, representing 2% of FTX's debt, each FUD token has a value of $1.

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— DebtDao (@debtdaoio) February 4, 2023

Justin Sun, the advisor at Huobi exchange, said that the FUD token will help to boost the confidence of the crypto investors & also help the growth of the industry in a positive direction.

The listing of FUD Token on reputable exchanges like @HuobiGlobal is a clear indication that the crypto industry is moving in a positive direction. The demand for #FUD Token is a sign of confidence in the market, and a vote of support for a positive attitude towards crypto.

— H.E. Justin Sun₮ (@justinsuntron) February 5, 2023

Meanwhile few bad actors in the crypto sector showed their bad activity to scam people via new FUD tokens on the Ethereum network. Crypto analytic & security platform Peckshield warned people to remain away from fake FUD tokens.

#PeckShieldAlert PeckShield has detected a counterfeit token $FUD (FTX Users' Debt). Scammers distributed $FUD to Huobi exchange, pretending to be the Huobi exchange to add liquidity, and then sending millions of $FUD to @justinsuntron. Be alert!https://t.co/AWw1TyU1h6 pic.twitter.com/lIpdJT8jKf

— PeckShieldAlert (@PeckShieldAlert) February 5, 2023

A Singaporean finance lawyer shared his opinion on this token and noted that the token use case is a clear breach of the securities Act. 

This is 1000000% in breach of securities regulations.

Imagine people being worried about their game tokens being securities and Justin straight up lists a tranche of securitised garbage debt that may not even exist and shills it to retail investors.

— wassielawyer (@wassielawyer) February 5, 2023

Few people noted that Justin Sun or any team behind this token will not face any legal action because the majority of the Securities regulatory body in the world are not in the mood to talk about crypto assets. 

Tron founder Justin is a Chinese origin person but now he is living in Grenada, where he is now a citizen and a diplomat. so here it is clear that he will not face any regulatory heat because of such activities.

Read also: Visa currently focuses on stablecoin payments

Huobi exchange introduces FUD token to help FTX creditors

 

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