FTX Official: No "debt tokens" issued, creditors beware; Huobi issues FUD, price drops to $14

FTX official tweet states: FTX debtors have not issued any debt tokens, urging creditors to beware of fraudulent activities.

As the Name Suggests: FUD

Although FUD stands for FTX User’s Debt, it also carries the meanings of Fear, Uncertainty, and Doubt. According to the rules, the initial issuance of FUD is only 20 million tokens (2% of FTX debt), and a second public offering will be conducted to all FUD holders after FTX restores user data or confirms the total debt amount.

Despite Justin Sun's tweet indicating that the fair price of FUD is between 0 to 5 US dollars, the opening price skyrocketed to 200 US dollars at one point. Even with future airdrops, users who purchased FUD at a high price may need to receive a massive amount of airdrops to avoid losses. (Refer to the algorithm)

It is more accurate to say that FUD is a tool for betting on how massive the total debt of FTX is, rather than a debt token itself.

At the time of submission, the price of FUD is 14 US dollars, representing a 92% drop from its peak of 200 US dollars.